What is the risk premium on a share with a beta

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Question 1: You hold a portfolio with the following securities: Percent Security of Portfolio Beta Return X Corporation 20% 1.35 14% Y Corporation 35% .95 10% Z Corporation 45% .75 8% Compute the expected return and beta for the portfolio.

Question 2: CSG Limited's ordinary shares have a beta of 1.5. If the expected risk-free return is 2% and the expected return on the market is 14%, what is the expected return on the shares using CAPM?

Question 3: The Elvis Alive Corporation, makers of Elvis memorabilia, has a beta of 2.35. The return on the market portfolio is 12%, and the risk-free rate is 2.5%. According to CAPM, what is the risk premium on a share with a beta of 1.0?

Reference no: EM132606632

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