The investor calculates that the required return on her


An investor has $5000 invested in a stock that has an estimated beta of 1.2 and another $15,000 invested in the stock of the company for which she works. the risk-free rate is 6% and the market risk premium is also 6%. The investor calculates that the required return on her portfolio is 15%. what is the beta of the company for which she works?

a.1.6
b.1.7
c.1.8
d.1.9
e.2.0

 

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Finance Basics: The investor calculates that the required return on her
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