Question: Hello please help answer 1-3 and show the steps. It would be greatly appreciated 1. According to CAPM, what is the expected return of a
Hello please help answer 1-3 and show the steps. It would be greatly appreciated
1. According to CAPM, what is the expected return of a stock with a beta of 1.6, given that the market risk premium is 11% and the risk-free rate is 2%?
Input percentage points only. Round to 1 decimal.
2. Stock A has a beta of 0.8. Stock B has a beta of 1.8.
Calculate the beta of an equally-weighted portfolio of two securities A and B.
3. What is the beta of a portfolio with 29% in risk-free asset, and the rest in the market portfolio?
Round to 2 decimals.
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