Determine expected rate of return

Assignment Help Managerial Economics

Reference no: EM1373124

You are planning investing in a portfolio of common stocks of four publicly traded companies with betas as follows:

ABC: 0.7

DEF: 0.9

GHI: 1.3

JKL: 1.9

If the risk-free rate is 4% and the market rate is 10 percent, what is your expected rate of return in:

ABC?
DEF?
GHI?
JKL?

e. If your portfolio is 20% in ABC, 30% in DEF, 30% in GHI, and 20 percent in JKL, determine your portfolio (weighted average) expected rate of return?

Reference no: EM1373124

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