Required rate of return and expected rate of return

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1. You want to create a portfolio equally as risky as the market, and you have $500,000 to invest. Information about the possible investments is given below: How much must you invest in stock C?

Asset Investment Beta

Stock A $135,820 0.82

Stock B $143,414 1.39

Stock C --- 1.42

Risk free asset --- ---

2. True or False The difference between a required rate of return and an expected rate of return is that an expected rate of return is the interest rate an investor should receive on a security given its risk

 

Reference no: EM132031794

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