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What is the expected return on the above portfolio

Problem: Suppose you have invested $50,000 in the following four stocks:

Security Amount Invested Beta
Stock A $10,000 0.7
Stock B $15,000 1.2
Stock C $12,000 1.4
Stock D $13,000 1.9

The risk-free rate is 5 % and the expected return on the market portfolio is 18%.

Based on the capital-asset-pricing model, what is the expected return on the above portfolio?

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Solution Preview :

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Microeconomics: What is the expected return on the above portfolio

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Have a Question? (oR Write a Review)

Recent Questions Asked Microeconomics

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Solution Preview :

Prepared by a verified Expert

Microeconomics: What is the expected return on the above portfolio

Reference No:- TGS01745357

Recent Questions Asked Microeconomics

Q : Equilibrium levels of aggregate output-interest rate

Q : Time value of money-rent payments

Q : Profit maximizing firms short run cost

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Q : What is the expected return on the above portfolio

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Q : Graph for the production possibilities frontier

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