What is the expected return on this portfolio


A stock has a beta of 1.1, an expected return of 11.1 percent, and lies on the security market line. A risk-free asset is yielding 3.91 percent. Ferghus wants to create a $15,000 portfolio that is comprised of these two securities and that will have a portfolio beta of 0.62. What is the expected return (in percents) on this portfolio?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: What is the expected return on this portfolio
Reference No:- TGS0726081

Expected delivery within 24 Hours