Currently, the risk-free return is 4%, and the expected market rate of return is 11%. What is

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Currently, the risk-free return is 4%, and the expected market rate of return is 11%. What is the expected return of the following three-stock portfolio?

Amounted invested $200,000; Beta 0.7

Expected return: ?

Amounted invested 300,000; Beta 1.2

Expected return: ?

Amounted invested 500,000; Beta 2.2

Expected return: ?

Related Book For answer-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

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Posted Date: Mar 16, 2023 06:20 AM

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Currently, the risk-free return is 4%, and the expected market rate of return is 11%. What is

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Expert Answer:

To calculate the expected return of the portfolio we can use the following form... View the full answer

Contemporary Financial Management

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