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Author Question: Consider the two assets outlined in the table below. What is the beta of the two asset portfolio ... (Read 16 times)

RRMR

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  • Posts: 557
on: Apr 25, 2021

Question 1

Assume that the financial markets are in equilibrium. Information on three particular stocks is provided in the table below. Find the risk free rate and the expected return on the market portfolio.

AssetExpected ReturnBeta
A7.6%0.2
B12.4%0.8
C15.6%1.2

◦ 5%, 14%
◦ 5%, 18%
◦ 6%, 14%
◦ 6%, 18%
◦ 7%, 16%

Question 2

Consider the two assets outlined in the table below. What is the beta of the two asset portfolio given that 40% is invested in X?

AssetExpected ReturnBeta
X12%0.40
Risk Free5%0

◦ 0.026
◦ 0.085
◦ 0.160
◦ 0.190
◦ 0.220
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by RRMR on Apr 25, 2021

izzat

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Reply #1 on: Apr 25, 2021
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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RRMR

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Reply 2 on: Apr 25, 2021
Thanks for the timely response, appreciate it

carojassy25

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

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