The risk free rate is 12.5% and the market retum is 17%. A B 1,575 2,890...
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The risk free rate is 12.5% and the market retum is 17%. A B 1,575 2,890 20.3% 14.7% STOCK AMOUNT (GHC) EXPECTED RETURN BETA C 3,079 17.8% 1.40 0.60 -0.90 (a) Calculate the expected return of a portfolio made up of all stocks A, B, C and D. (b) Compute the required return for each stock, using the capital asset pricing model (CAPM (c) Compute the portfolio required return. D 2,105 15.5% 1.90 The risk free rate is 12.5% and the market retum is 17%. A B 1,575 2,890 20.3% 14.7% STOCK AMOUNT (GHC) EXPECTED RETURN BETA C 3,079 17.8% 1.40 0.60 -0.90 (a) Calculate the expected return of a portfolio made up of all stocks A, B, C and D. (b) Compute the required return for each stock, using the capital asset pricing model (CAPM (c) Compute the portfolio required return. D 2,105 15.5% 1.90
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To calculate the expected return of a portfolio made up of stocks A B C and D we need to consider the weights of each stock in the portfolio and their ... View the full answer
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