Risk-free security-invested in the market portfolio

Assignment Help Financial Management

Reference no: EM131450530

Suppose a risk-free security pays a 8% return, and a market portfolio has an expected return of 9%.

1. What is the expected return on a portfolio that has $6,000.00 invested in the risk-free security and $4,000.00 invested in the market portfolio? Round your answer to one decimal place.

2. What is the CAPM beta of the portfolio? Round your answer to two decimal places.

3. Does the CAPM beta correspond to the portfolio weight invested in the market portfolio? Yes or No

Reference no: EM131450530

Questions Cloud

Weight average cost of capital : Twin Lakes Research Inc. (TLRI) is financed as follows. What is the market value of TLRI’s common shares? What is the total market value of TLRI?

Describe rationale used to select your target populatio. : describe rationale used to select your target population (that is, who would be your target sample or population?)

Find and evaluate the rating methodology and criteria : Every year, Ethisphere Magazine publishes a list of the world's most ethical companies. Go to its website; find and evaluate their rating methodology.

Describes the components of the research study : Create a comparison matrix that describes the components of the research study.The key details of the two research approaches.

Risk-free security-invested in the market portfolio : What is the expected return on a portfolio that has $6,000.00 invested in the risk-free security and $4,000.00 invested in the market portfolio?

To what degree have you chosen your own values : Consider your own personal values and explain where they originated. Can you pinpoint their derivation.

What is the company total asset turnover : The Cavo Company has an ROA of 9.3 percent, a profit margin of 11 percent, and an ROE of 17 percent. What is the company’s total asset turnover?

What information is available at state or city government : Determine what information is available at state or city government's public health department regarding the reporting of communicable diseases.

Create a research question related to your problem statement : Discuss components of each study (that is, what was done in the study). Determine validity of each study

User Account

All Pages