A stock has a beta of 110 an expected return of 1211, Ask an Expert

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A stock has a beta of 1.10, an expected return of 12.11 percent, and lies on the security market line. A risk-free asset is yielding 3.2 percent. You want to create a portfolio valued at $12,000 consisting of Stock A and the risk-free security such that the portfolio beta is .80. What rate of return should you expect to earn on your portfolio?

9.41 percent

9.68 percent

9.16 percent

9.33 percent

9.56 percent

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92084606

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