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Question: The risk-free interest rate is 5% and the Unilever's beta coefficient is 1.5. If the market risk premium is 6%, what is the required return on Unilever's stock?

A portfolio has two assets; A & B. Asset A has an expected return of 5% and a standard deviation of return of 2%. Asset B, on the other hand, has an expected return of 12% and a standard deviation of return of 5%. The covariance of return is 7.5(%)^2. What are the portfolio's expected return and standard deviation, if 50% of the portfolio is in asset A?

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Category:- Basic Finance
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