The beta of the market portfolio

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Given the following information, calculate the required rate of return on the stock. (Use CAPM)

Rrf = 4% ; Rm = 12% ; BA = 1.5 (Rrf = risk free rate, Rm= market risk, BA= beta)

A.) 5% B.) 13% C.) 16% D.) 18% Please show your work

The beta of the market portfolio (Bm) is:

A.) zero B.) 0.5 C.) 1.0 D.) 2.0 Please show your work

Reference no: EM132036835

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