CAPM and Portfolio Return 1. A stock has a beta of 0.90, the market risk premium is 13%, and the risk-free rate is 6%. What is the expected return on the stock?
2.A stock has a beta of 0.90, the return on the market is 13%, and the risk-free rate is 6%. What is the expected return on the stock? a A stock has an expected return of 17%, the risk-free rate is 5.5%, and the market risk premium is 8%. What must the beta of this stock be?
a. Suppose the expected return on Stock A is 9.5%, the expected return on the market portfolio is 8%, and the risk-free rate is 2%. Solve for beta for Stock A. 5. You own a portfolio that has $1,200 invested in Stock A and $1,900 invested in Stock B. If the expected returns on these stocks are 11% and f 6%, respectively, what is the expected return on the portfolio?
