What is the expected return on a portfolio v

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 9-22
Suppose that borrowing is restricted so that the zero-beta verslon of the CAPM holds. The expected return on the market portfolio Is
16%, and on the zero-beta portfolio It Is 6%. What is the expected return on a portfollo with a beta of 0.9? (Do not round Intermedlate
calculatlons. Round your answer to 2 decimal places.)
Expected return
Transcribed Image Text:Problem 9-22 Suppose that borrowing is restricted so that the zero-beta verslon of the CAPM holds. The expected return on the market portfolio Is 16%, and on the zero-beta portfolio It Is 6%. What is the expected return on a portfollo with a beta of 0.9? (Do not round Intermedlate calculatlons. Round your answer to 2 decimal places.) Expected return
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