You invest $1000 in security A with a beta of 2 and $500 in security B with a beta of 1. The expected market return is 1

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answerhappygod
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You invest $1000 in security A with a beta of 2 and $500 in security B with a beta of 1. The expected market return is 1

Post by answerhappygod »

You invest $1000 in security A with a beta of 2 and $500 in
security B with a beta of 1. The expected market return is 10% and
the risk free rate is 3%.
The beta of your portfolio equals ________.
A) 1
B) 1.50 C) 1.67 D) 1.75
2. According to the CAPM, your portfolio should have an expected
return of
___________.
A) 12.2% B) 13.5% C) 14.7% D) 15.2% E) 20%
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