Determining expected return of portfolio, Finance Basics

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Determining expected return of portfolio

You are considering a portfolio of two stocks: X and Y. Stock X has an expected return of 12% and a beta if 1.2. Stock Y has a beta of 0.7, and Treasury Bills are yielding 3%. If all stocks are fairly priced, and you want your portfolio to have a beta equal to the market, what is the expected return of your portfolio?

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Finance Basics: Determining expected return of portfolio

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Finance Basics: Determining expected return of portfolio

Reference No:- TGS039272

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Forensic accountant consulting for the mixed veggies company

Q : Show and explain effect on equilibrium price and quantity

Q : Does trade-off always exist in the health sector

Q : Determine the safe distribution available to each partner

Q : Determining expected return of portfolio

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Request for Solution File

Ask an Expert for Answer!!

Finance Basics: Determining expected return of portfolio

Reference No:- TGS039272

Recent Questions Asked Finance Basics

Q : Forensic accountant consulting for the mixed veggies company

Q : Show and explain effect on equilibrium price and quantity

Q : Does trade-off always exist in the health sector

Q : Determine the safe distribution available to each partner

Q : Determining expected return of portfolio

Q : Big bang approach versus the phased-in approach

Q : What are the implications for health policy

Q : Determine the payback period

Q : Identify which individuals face a risk of five percent

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