What is the expected rate of return


Mr. Nimish holds the following portfolio.

Share Beta Investment
Alpha 0.9 Rs.12, 00,000
Beta 1.5 Rs. 3, 50,000
Carrot 1.0 Rs. 1, 00,000


What is the expected rate of return on his portfolio, if the risk rate is 7 per cent and the expected return on the market portfolio is 16 per cent?

 

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Accounting Basics: What is the expected rate of return
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