The risk free rate is 5 and the market risk premium is 8


You have a portfolio of two stocks held in equal weights. The ABC stock has a beta of 1.7, and the XYZ stock has a beta of -0.7. The risk free rate is 5% and the market risk premium is 8%. What is the return on the portfolio?

Enter as a percent and round to the nearest hundredth of a percent.

Solution Preview :

Prepared by a verified Expert
Finance Basics: The risk free rate is 5 and the market risk premium is 8
Reference No:- TGS02758574

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)