The following information is available Share Number of share Share price Beta value A 20,000 200 1 8 B 40,000 150 0 9 C 30,000 100 1 2 D 90,000 40 2 4 The risk free interest rate is 4 and the market risk premium is 7 What is the required rate of return on the portfolio A) Between 13 and 14 B) Betwe...

4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 E Share A B ...

The following information is available: Share Number of share Share price Beta value A 20,000 200 1.8

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The following information is available:

Share	Number of share	Share price	Beta value
A	20,000	200	1.8
B	40,000	150	0.9
C	30,000	100	1.2
D	90,000	40	2.4

The risk-free interest rate is 4% and the market risk premium is 7%. What is the required rate of return on the portfolio?

A) Between 13% and 14%

B) Between 14% and 15%

C) Between 15% and 16%

D) None of the above is true

Related Book For answer-question

Fundamental Financial Accounting Concepts

ISBN: 978-0078025907

9th edition

Authors: Thomas Edmonds, Christopher Edmonds

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Posted Date: Jul 17, 2022 08:32 AM

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The following information is available: Share Number of share Share price Beta value A 20,000 200 1.8

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Fundamental Financial Accounting Concepts

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