Given the risk free rate of 2 and the market risk premium


Answer the following question :

Kelly has investments with the following characteristics in her portfolio: Stock Q Beta=.95 Amount invested= $5,000, Stock R Beta=2.0 Amount invested= $15,000, Stock S Beta=1.5 Amount invested $10,000.

Given the risk free rate of 2% and the market risk premium of 5%, what is the expected rate of return of Kellys investment portfolio?

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Financial Management: Given the risk free rate of 2 and the market risk premium
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