One-half of portfolio is invested in the risk-free security

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Reference no: EM131339673

A $16,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 0.82 while the beta of stock B is 1.72. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0.57?

Rosamerta owns a stock that has an expected return of 15.53 percent and a beta of 1.61. The U.S. Treasury bill is yielding 3.22 percent and the inflation rate is 3.86 percent. What is the expected rate of return (in percents) on the market?

Reference no: EM131339673

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