Question: Please help me complete this! I have been struggling for a while,and mainly I need the answer! Thank you! Give Kudos! Question 3 (10 points):
Please help me complete this! I have been struggling for a while,and mainly I need the answer! Thank you! Give Kudos!
Question 3 (10 points): Stock A has a beta of 1.5. The S&P 500 has a return of 12%. The return on T-bills is currently 4%. (a) What is the required return on stock A using CAPM? (b) What is the expected return on a portfolio that is equally invested in the S&P500 and t-bills? (c) If you construct an equally weighted portfolio of the 3 assets above (stock A, S&P 500 and t-bill), what is the portfolio beta
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