Use the table for the question(s)below.
Consider the following three individuals portfolios consisting of investments in four stocks:
-Assuming that the risk-free rate is 4% and the expected return on the market is 12%,then required return on Peter's Portfolio is closest to:
A)10%
B)12%
C)9%
D)8%

Question

Use the table for the question(s)below.
Consider the following three individuals portfolios consisting of investments in four stocks: 
-Assuming that the risk-free rate is 4% and the expected return on the market is 12%,then required return on Peter's Portfolio is closest to:
A)10% 
B)12% 
C)9% 
D)8%

Quizplus · Accepted Answer

C)bp_ortfolio = Σx_ib_i r_i = r_f + b(E[R_Mkt] - r_f) = .04 + .65(.12 - .04)= .092 11ea7cce_3d32_3879_928c_7b7c298381a3_TB1626_00

Use the Table for the Question(s)below