cearadenney7067
cearadenney7067
20.10.2021 • 
Business

Consider the following information: Portfolio Expected Return Beta
Risk-free 10 % 0
Market 18 1.0
A 16 1.5
a. Calculate the expected return of portfolio A with a beta of 1.5.
Expected return %
b. What is the alpha of portfolio A. (Negative value should be indicated by a minus sign.)
Alpha %
c. If the simple CAPM is valid, state whether the above situation is possible?
Yes
No

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