What is the expected return and beta of your portfolio using the following data: - 14630

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yousafbhutta

yousafbhutta

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What is the expected return and beta of your portfolio using the following data: (5)

Market risk premium = 8 percent
Risk-free rate = 4 percent
Beta of XYZ = 1.5; Beta of PDQ = 2.0
Investment in XYZ stock = $50,000
Investment in PDQ stock = $100,000
You have no other financial assets
Beta of Portfolio =  1.83

Solution Description

 

What is the expected return and beta of your portfolio

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