Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 25) laura has one risk-free asset and one risky st

25) Laura has one risk-free asset and one risky stock in her portfolio. The risk-free...

90.2K

Verified Solution

Question

Finance

image
25) Laura has one risk-free asset and one risky stock in her portfolio. The risk-free asset has an expected return of 3.2 percent. The risky asset has a beta of 1.3 and an expected return of 14.9 percent. What is the expected return on the portfolio if the portfolio beta is 0.975? A) 7.65 percent B) 9.83 percent C) 10.73 percent D) 11.98 percent E) 12.37 percent 26) Wilson Farms' stock has a beta of.84 and an expected return of 7.8 percent. The risk-free rate is 2.6 percent and the market risk premium is 6 percent. This stock is CAPM return for the stock is A) undervalued; 7.34 B) undervalued; 7.49 C) undervalued; 7.64 D) overvalued; 7.34 E) overvalued; 7.49 because the percent

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is a Skeleton? Briefly list out the bones of the skull and explain each...

Medical Sciences
Q

In the class, we had formulated the rules for the r’s compliment subtraction (also see section...

Electrical Engineering
Q

An analyst determines that three stocks have the following characteristics: Stock Beta, Forecast return X 1.0...

Finance
Q

A genetic mutation causes issues with gap junction formation. Which physical issue is most likely...

Biology
Q

Suppose Carter wants to find out about climat change He would find the most information...

Biology
Q

A patient recently diagnosed with Alzheimer's disease takes a cognitive abilities test and scores a...

Basic Math
Q

The behaviour of tides in a fishing community can be modelled using the function h...

Algebra
Q

7 and 8 find the zero s of the function 7 y 6x 6 8...

Algebra
Q

please help, will give a thumbs up if correct

Accounting
Q

You are a supply manager for a major distributor. The CEO has strongly encouraged that...

Accounting
Q

At the end of the year, retained earnings totaled $2,700. During the year net income...

Accounting
Q

Question 1 One of your clients, Southgate plc., has asked for your assistance with its...

Finance