Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. consider the following information: expected retur

Consider the following information: Expected Return Portfolio Risk-free Market 5% 13.6 11.6 1.0 1.5 a....

50.1K

Verified Solution

Question

Finance

image

Consider the following information: Expected Return Portfolio Risk-free Market 5% 13.6 11.6 1.0 1.5 a. Calculate the the return predicted by CAPM for a portfolio with a beta of 1.5. (Round your answer to 2 decimal places.) Return b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Alpha c. If the simple CAPM is valid, is the situation above possible? O Yes O No

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

Consider the probability that at least 36 out of 298 cell phone calls will be disconnected....

Basic Math
Q

The customer expectation when phoning a customer service line is that the average amount of time...

Basic Math
Q

Let f1(n) and f2(n) be asymptotically nonnegative functions. Using the formal definition of Θ-notation, prove that...

Programming
Q

An angiosperm seed is made up of a diploid embryo triploid endosperm and diploid seed...

Biology
Q

A stone attached to a rope of length 1 80 cm is rotated in vertical...

Physics
Q

15 Find the volume of the pyramid 20 m 30 m 24 m

Geometry
Q

If a, b, c are real and a + b + c= 1, then ab...

Basic Math
Q

The traffic flow rate (cars per hour) across an intersection is r(t)=300+900t-180t, where t is...

Calculus
Q

4 points Find values of b and d so that the matrix 1 b 1...

Algebra
Q

Gibran bought a boat valued at $110,194.00 on the installment plan. He made equal semi-annual...

Accounting
Q

Kiyara (single) is a 50 percent shareholder of Guardian Corporation (an S Corporation). Kiyara does...

Accounting
Q

Enter account decreases and cash outflows as negative amounts. Financial Statement Effects account decreases and...

Accounting