At the beginning of 2021 Lemon Company has a share price of $3.00, and a beta...

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At the beginning of 2021 Lemon Company has a share price of $3.00, and a beta of 2, whereas Lime Company shares have a beta of 1.5 and a share price of $4.80. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, according to the capital asset pricing model: Please note that you do not need to type the "$ and %" symbol. Please only type numerical or words, no symbols. Required: 23(a) What is the expected return of Lemon Company shares? (2 marks) Please answer to 2 decimal places. Answer - % 23(b) What is the expected return of Lime Company shares? (2 marks) Please answer to 2 decimal places. Answer - % 23(c) What is the beta of a portfolio that consists of 40% Lemon Shares and 60% Lime shares? (3 marks) Please answer to 2 decimal places. Answer - 23(d) What is the expected return of a portfolio that consists of 40% Lemon Shares and 60% Lime shares? (3 marks) Please answer to 2 decimal places. Answer - % At the beginning of 2021 Lemon Company has a share price of $3.00, and a beta of 2, whereas Lime Company shares have a beta of 1.5 and a share price of $4.80. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, according to the capital asset pricing model: Please note that you do not need to type the "$ and %" symbol. Please only type numerical or words, no symbols. Required: 23(a) What is the expected return of Lemon Company shares? (2 marks) Please answer to 2 decimal places. Answer - % 23(b) What is the expected return of Lime Company shares? (2 marks) Please answer to 2 decimal places. Answer - % 23(c) What is the beta of a portfolio that consists of 40% Lemon Shares and 60% Lime shares? (3 marks) Please answer to 2 decimal places. Answer - 23(d) What is the expected return of a portfolio that consists of 40% Lemon Shares and 60% Lime shares? (3 marks) Please answer to 2 decimal places. Answer - %

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Okay here are the calculations 23a Risk free rate 4 Market portfolio expected return 10 B... View the full answer