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Author Question: The risk-free rate is 7% and the market risk premium is 8%. Your $1 million portfolio consists of ... (Read 69 times)

isam

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on: Aug 7, 2023
The risk-free rate is 7% and the market risk premium is 8%. Your $1 million portfolio consists of $600,000 invested in a stock that has a beta of 1.5 and $400,000 invested in a stock that has a beta of 0.9. Which of the following statements is correct?

◦

If the stock market is efficient, your portfolio’s expected return should equal the expected return on the market, which is 15%.


◦

The required return on the market is 12%.


◦

The portfolio’s required return is greater than 15%.


◦

If the risk-free rate remains unchanged but the market risk premium increases by 3%, your portfolio’s required return will increase by less than 3%.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by isam on Aug 7, 2023

Htimsrs

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Reply #1 on: Aug 7, 2023
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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isam

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Reply 2 on: Aug 7, 2023
Thanks for the timely response, appreciate it

bimper21

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

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