Question
In: Finance
Use the table for the question(s) below. Consider the following three individuals portfolios consisting of investments...
Use the table for the question(s) below.
Consider the following three individuals portfolios consisting of investments in four stocks:
|
Stock |
Beta |
Peter's Investment |
Paul's Investment |
Mary's Investment |
|
Eenie |
1.3 |
2500 |
5000 |
10,000 |
|
Meenie |
1.0 |
2500 |
5000 |
10,000 |
|
Minie |
0.8 |
2500 |
5000 |
minus |
|
5000 |
|
|
Moe |
minus |
|
0.5 |
2500 |
minus |
|
5000 |
minus |
|
5000 |
Assuming that the risk-free rate is 4% and the expected return on the market is 12%, then required return on Peter's Portfolio is closest to:
A.
8%
B.
12%
C.
9%
D.
10%
Solutions
Expert Solution
SEE VALUES ARE JUMBLED. TABLE IS NOT PROPERLY FRAMED. SO
IF I HAVE PLOTTED ANY FIGURE WRONG, LET ME KNOW. WILL CORRECT IT.
OTHERWISE SUM IS FULLY CORRECT. THANK YOU
jeff jeffy answered 1 year agoRelated Solutions
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