An investor currently has all of his wealth in treasury


An investor currently has all of his wealth in Treasury bills. He is considering invest- ing one-third of his funds in General Electric, whose beta is 1.30, with the remainder left in Treasury bills. The expected risk-free rate (Treasury bills) is 6 percent and the market risk premium is 8.8 percent. Determine the beta and the expected return on the proposed portfolio.

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Financial Management: An investor currently has all of his wealth in treasury
Reference No:- TGS01570121

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