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Author Question: Your friend, Dobson, manages the Formula Growth mutual fund. Dobson expects to earn 11% on his ... (Read 69 times)

strangeaffliction

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on: Apr 25, 2021
Your friend, Dobson, manages the Formula Growth mutual fund. Dobson expects to earn 11% on his portfolio with a beta of 1.2. You only invest in shares of General Electric and T-Bills. You like GE because it was started in 1890 by Thomas Edison, the great American inventor, and it has a diversified portfolio of products including jet engines and MRI diagnostic imaging machines. The expected return of GE is 13% and its beta is 1.40. The expected return on T-Bills is 2%. If you construct your portfolio so that its risk is equal to the risk of Formula Growth, then what portfolio weight do you need on the shares of GE?
◦ 0.85
◦ 0.86
◦ 0.87
◦ 0.88
◦ 0.89
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by strangeaffliction on Apr 25, 2021

debra928

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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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strangeaffliction

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

ttt030911

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

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