If the risk free rate on interest were 45 and market risk

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Reference no: EM13476712

Portfolio Beta and Capital Asset Pricing Model(CAPM).

Asset Beta First Portfolio Second Portfolio

A 2.40 20% 30%

B 0.90 20% 30%

C 0.60 30% 20%

D -1.60 30% 20%

a.)What is the beta for each portfolio?( I have 0.36 for First and 0.79 for Second)

b.) If the risk free rate on interest were 4.5% and the market risk premium were 7.5%, what rate of return would you expect to earn from each portfolio?

Reference no: EM13476712

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