Question: The risk-free rate is 3% and the expected return on the market portfolio is 11%. Assume that you own a portfolio that consists of the
The risk-free rate is 3% and the expected return on the market portfolio is 11%. Assume that you own a portfolio that consists of the following stocks. Stock Beta Market Value A 1.1 $25,000 B 1.8 $40,000 C 1.0 $45,000 D 0.7 $50,000 E 0.8 $80,000 Calculate the following. (Do not round intermediate calculations. Round the final answer to 2 decimal places.)
a)Protfolio Beta-
b)Expected return rate -
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