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Business, 05.05.2020 04:16 thanks5640

We have the following CAPM E(Ri) = .06 + .08 Beta; a) If Stock X has a beta of 2, what is the required rate of return? b) If we form a portfolio that is invested 40% in Stock X and 60% in the risk free asset, the expected rate of return on that portfolio? What is the beta of that portfolio? Stock Z has a beta of 1.5 and an expected return of 15%. Is at a good buy? d)Construct a portfolio of Stock X and the risk free asset which has a beta of 1.5. what is c) e) What is the expected return for this purpose?

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We have the following CAPM E(Ri) = .06 + .08 Beta; a) If Stock X has a beta of 2, what is the requir...
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