The risk free rate is 4 and the expected return on the, Financial Management

+44 141 628 6080
[email protected]

The risk free rate is 4 and the expected return on the

The risk free rate is 4%, and the expected return on the market is 12%. There is also an asset X with a Beta of 1.5.What is the return on portfolio 1 consisting of 40% of asset X and the rest in an asset with no risk? What is the return on portfolio 2 which is equally weighted in the risk free asset, the market portfolio, and asset X?

a. The E(R) on portfolio 1 is 13.6% and the E(R) on portfolio 2 is 10.67%

b. The E(R) on portfolio 1 is 16% and the E(R) on portfolio 2 is 8.8%

c. The E(R) on portfolio 1 is 8.8% and the E(R) on portfolio 2 is 16%

d. The E(R) on portfolio 1 is 16% and the E(R) on portfolio 2 is 8.8%

e. The E(R) on portfolio 1 is 8.8% and the E(R) on portfolio 2 is 10.67%

View Complete Question

Request for Solution File

Ask an Expert for Answer!!

Financial Management: The risk free rate is 4 and the expected return on the

Reference No:- TGS01092594

Expected delivery within 24 Hours

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Asked Questions

Identify one antecedent, one behaviour, and one consequence

Sahir is the most active student in your kindergarten class. He tends to be very disruptive when the teacher you work with is teaching the class,

Discussion about the nature versus nurture

In our readings, we learn more about the nature versus nurture argument. For this discussion, I want you to go in depth a bit more and debate the importance

Discuss social worker working with foster children

You are a social worker working with foster children. You are making a home visit to Katie, age nine, and her foster family.

Is lifespan psychologists are unlikely to investigate

Lifespan psychologists are unlikely to investigate both changes as well as consistencies that exist in different individuals'

Identify a true statement about validity

Question: Identify a true statement about validity as applied to a test. Multiple choice question

Describe the results, including any scores

Describe the results, including any scores. Result: E6% Extraverted Action oriented, Outgoing, Expressive, Hands-On S17% Sensing Traditional,

Problem concerning consensual sexual relationship

Question: Jena and Ben are employees of Big City Electronics. They began to have a consensual sexual relationship.

Request for Solution File

Ask an Expert for Answer!!

Financial Management: The risk free rate is 4 and the expected return on the

Reference No:- TGS01092594

Have a Question? (oR Write a Review)

Recent Questions Asked Financial Management

Q : You want to add an additional stock to your portfolio and

Q : A company today issues a 15-year 1000 bond that carries a

Q : A stock has had returns of 11 percent 29 percent 16 percent

Q : Great pumpkin farms just paid a dividend of 310 on its

Q : The risk free rate is 4 and the expected return on the

Q : Which of the following statements regarding the efficient

Q : A stock has the following year end prices and dividends

Q : You read that the company just paid 664 dividend per share

Q : Today is a day in may 2525 and a bond with an coupon rate