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Author Question: Assume that the risk-free rate is 5.5% and the market risk premium is 6%. A portfolio manager has ... (Read 63 times)

jhjkgdfhk

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on: Apr 25, 2021
Assume that the risk-free rate is 5.5% and the market risk premium is 6%. A portfolio manager has $10 million invested in a two-asset portfolio that has an (equilibrium) expected return of 12%. The manager plans to sell $3 million of Stock A with a beta of 1.6. She plans to reinvest this $3 million into Stock B that has a weight of 0.70. What is the (equilibrium) expected return of her new portfolio?
◦ 8.28%
◦ 10.38%
◦ 10.52%
◦ 10.90%
◦ 11.31%
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Marked as best answer by jhjkgdfhk on Apr 25, 2021

ciecieme

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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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jhjkgdfhk

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

ricroger

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

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