Reference no: EM132460716
The beta of four stocks-?P, ?Q, R, and are 0.54?, 0.72?, 1.11?, and 1.49?, respectively and the beta of portfolio 1 is 0.97?, the beta of portfolio 2 is
Question 1: What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotted with an intercept of 4.0?% ?(risk-free rate) and a market premium of 10.5?% ?(slope of the? line)?
Question 2: What is the expected return of stock? P?
Question 3: What is the expected return of stock? Q?
Question 4: What is the expected return of stock? R?
Question 5: What is the expected return of stock? S?
Question 6: What is the expected return of PORTFOLIO 1?
Question 7: What is the expected return of PORTFOLIO 2?
Question 8: What is the expected return of PORTFOLIO 3?