Question

In: Economics

Suppose the risk-free rate is 1% and the market’s risk premium is 7%. If a portfolio...

Suppose the risk-free rate is 1% and the market’s risk premium is 7%. If a portfolio has a Beta of 1.2, what rate of return would you expect on this portfolio?

Select one:

a. Cannot tell from the information given

b. 9.6%

c. 8.7%

d. 9.4%

Solutions

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