Check to make sure your answer is completely correct. Assume that CAPM...

50.1K

Verified Solution

Question

Finance

Check to make sure your answer is completely correct.

image Assume that CAPM holds. You are given the following information about stock X and the market portfolio, M: If the correlation between stock X's return and the market portfolio's return is 0.5 , what is the expected return of your portfolio that has 30% risk-free asset, 40% stock X, and 30% market portfolio? 7.70%8.80%8.40% Cannot be calculated 8.10%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students