Sally has investments with the following characteristics in her portfolio: Investment in Beta Amount invested Stock Q 1.5 $80,000 Stock R 2.0 $50,000 Stock S 0.85 $70,000 Given the risk free rate of 2% and the market return of 7%, what is the expected rate of return of Sally’s investment portfolio?
Sally has investments with the following characteristics in her portfolio: Investment in Beta Amount invested Stock Q 1.5 $80,000 Stock R 2.0 $50,000 Stock S 0.85 $70,000 Given the risk free rate of 2% and the market return of 7%, what is the expected rate of return of Sally’s investment portfolio?
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13P
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- Sally has investments with the following characteristics in her portfolio:
Investment in |
Beta |
Amount invested |
Stock Q |
1.5 |
$80,000 |
Stock R |
2.0 |
$50,000 |
Stock S |
0.85 |
$70,000 |
Given the risk free rate of 2% and the market return of 7%, what is the expected
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