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Author Question: If Geek Computer has a beta of .8, the return from Treasury bills is 3 and the return from the ... (Read 235 times)

fahad

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If Geek Computer has a beta of .8, the return from Treasury bills is 3 and the return from the market portfolio is 20, what is the required return from Geek stock?
 
  A) 16.6
  B) 15.7
  C) 22.8
  D) 20.0
  E) 17.5

Question 2

Assume that both Apple and Yahoo plot on the SML. Apple has a beta of 2.6 and an expected return of 21.2. Yahoo has a beta of 0.90 and an expected return of 9.3.
 
  The expected return on the market portfolio is 10and the risk-free rate is 3. If you wish to hold a portfolio consisting of Apple and Yahoo and have a portfolio beta equal to 1.5, what proportion of the portfolio must be in Apple? What is the expected return on the portfolio?
 
   Apple Yahoo Market Portfolio Risk-free Asset
  Beta 2.6 0.9 1.0 0.0
  Expected Return 21.2 9.3 10.0 3.0
  What will be an ideal response?


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mjbamaung

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fahad

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Reply 2 on: Jul 10, 2018
Wow, this really help


Bigfoot1984

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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