Suppose a certain investor has $20,000 to invest, but he raises an additional $5,000 by borrowing. The investor then puts all $25,000 in the market portfolio. Knowing that the market risk premium is 6% and the risk-free rate is 3%.calculate the beta of this portfolio.

Answer rating: 100% (QA)

To calculate the beta of the portfolio we need to consider the proportion of the investment that com... View the full answer