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Author Question: You live in an Eichler-built house in Cupertino California. You admire Apple so much that it is the ... (Read 18 times)

renzo156

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You live in an Eichler-built house in Cupertino California. You admire Apple so much that it is the only stock that you want in your portfolio. You have $100,000 of your own money to invest and you intend to buy more Apple on margin by borrowing an additional $40,000. Your broker will lend to you at the risk free rate, 5%, and has guaranteed the lending rate for the duration of your investment. Apple's expected return is 12% and the expected return on the market is 8%. Apple's beta is 1.25. What beta do you expect from your portfolio?
◦ 1.25
◦ 1.45
◦ 1.55
◦ 1.65
◦ 1.75


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Marked as best answer by renzo156 on Apr 25, 2021

atrochim

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renzo156

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Reply 2 on: Apr 25, 2021
Excellent


LVPMS

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

 

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