You have a portfolio with a beta of 121 what will be the


1. GM common stock pays a constant annual dividend $1/share forever and its stock price is $20. If risk free rate is 1% APR, what is the risk premium of the stock?

2. You have a portfolio with a beta of 1.21. What will be the new portfolio beta if you keep 90 percent of your money in the old portfolio and 10 percent in a stock with a beta of 0.51? (Do not round intermediate calculations and round your answer to 2 decimal places.)

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Financial Management: You have a portfolio with a beta of 121 what will be the
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