Assume that you have just received information from your investment advisor that your portfolio has reached...
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Assume that you have just received information from your investment advisor that your portfolio has reached a value of $2,000,000. Your portfolio consists of three stocks, as follows: Stock A B C Total: Amount Invested $600,000 $400,000 $1,000,000 $2,000,000 % of Total 30.00% 20.00% 50.00% 100% a. Calculate the beta of this investment portfolio. Beta 1.12 .85 .55 b. Assume that the expected market return (rm) is 10 percent and the expected risk- free rate (RE) is 4 percent. What is the expected return (r) for this investment portfolio? Assume that you have just received information from your investment advisor that your portfolio has reached a value of $2,000,000. Your portfolio consists of three stocks, as follows: Stock A B C Total: Amount Invested $600,000 $400,000 $1,000,000 $2,000,000 % of Total 30.00% 20.00% 50.00% 100% a. Calculate the beta of this investment portfolio. Beta 1.12 .85 .55 b. Assume that the expected market return (rm) is 10 percent and the expected risk- free rate (RE) is 4 percent. What is the expected return (r) for this investment portfolio?
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Related Book For
Fundamentals of Financial Management
ISBN: 978-0324597707
12th edition
Authors: Eugene F. Brigham, Joel F. Houston
Posted Date:
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