During the last year, you had investments in the following three stocks:StockAmount InvestedBetaActual ReturnA$49,500$110,000$44,0001.0912%B0.687%(0.45)3%During the same year, the risk-free rate was 5% and the return on the marketportfolio was 12%.(1) What is the actual return earned by your portfolio?(1i) What is the beta of your portfolio? (2 s(lii) Using the beta calculated in (ii) above, calculate tte required return onyour portfolio

Return on portfolio and beta of portfolio can be calculated by weighted average return and beta of…

During the same year, the risk-free rate was 5% and the return on the m portfolio was 12%. (1) What is the actual return earned by your portfolio? (ii) What is the beta of your portfolio? (2 (iii) Using the beta calculated in (I1) above, calculate tte required return or your portfolio

During the same year, the risk-free rate was 5% and the return on the m portfolio was 12%. (1) What is the actual return earned by your portfolio? (ii) What is the beta of your portfolio? (2 (iii) Using the beta calculated in (I1) above, calculate tte required return or your portfolio

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter2: The Domestic And International Financial Marketplace

Section: Chapter Questions

Problem 1P

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