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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 207 times)

fahad

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on: Jul 10, 2018
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?
Foundations of Finance ¦ Keown, Petty, Martin ¦ 9th Edition
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mjbamaung

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Reply #1 on: Jul 10, 2018
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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fahad

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Reply 2 on: Jul 10, 2018
YES! Correct, THANKS for helping me on my review

laurnthompson

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Reply 3 on: Yesterday
Excellent

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