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Find expected return of the portfolio

Using the following data:

Market Risk Premium=8%
Risk Free Rate=4%
Beta of XYZ stock=1.5
Beta of PDQ stock=2.0
Investment in XYZ stock=$50,000
Investment in PDQ stock=$100,000

You have no assets other than your investments in XYZ and PDQ stock.

What is the expected return of your portfolio? Show all work.

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Finance Basics: Find expected return of the portfolio

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find expected return of the portfolio

Reference No:- TGS0674349

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : How much overhead will be assigned to product b using

Q : What rate of return have recieved if retained title to land

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find expected return of the portfolio

Reference No:- TGS0674349

Recent Questions Asked Finance Basics

Q : How much overhead will be assigned to product b using

Q : What rate of return have recieved if retained title to land

Q : State and international policies on euthanasia

Q : Describe the predetermined overhead rate

Q : Find expected return of the portfolio

Q : Meaning of recruitment and retention

Q : Question regarding the unlevered beta

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