1. Suppose the expected return on Stock A is 9.5%, the expected return on the market portfolio is 8%, and the risk-free rate is 2%. Solve for beta for Stock A.
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3. You own a portfolio that has $1,200 invested in Stock A and $1,900 invested in Stock B. If the expected returns on these stocks are 11% and 16%, respectively, what is the expected return on the portfolio?

Answer rating: 100% (QA)

To solve for beta for Stock A we can use the Capital Asset Pricing Model CAPM formula textExpected R... View the full answer