I the t-bill rate is 5 and the market risk premium is 55


An investor has the following portfolio:

Stock Beta   Investment

Tootsie Roll Industries 1.3 $10,000

The Hershey Company   1.4   $30,000

Nestle 0.6   $10,000

If the T-Bill rate is 5% and the market risk premium is 5.5%, according to the CAPM, what is the expected return for this portfolio?

The expected return for this portfolio is ___?%.

?(Round to two decimal places.)

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Financial Management: I the t-bill rate is 5 and the market risk premium is 55
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