ear market blandy gourmange 1 30% 20% 47% 2 7 % 15% _54% 3 18% _14% 15% 4 _22% _15% 7% 5 _14 % 2% _28% 6 10 % _18% 40% 7 26% 42% 17% 8 _10% 30% _23% 9 _3% _32% _4% 10 38% 28% 75% AR 8.0% 6.4% 9.2% Sd 20.1% 25.2% 38.6% 1.00 Beta 1.0 The risk free rate is 4% and the market risk premium is 5%. Your client decided to invest R 1.4 million in blandy stock and R0.6 million in gourmange stock. What are the weights for this porfolio? What is the porfolio's beta? What is the required return for this porfolio?
Year market blandy gourmange
1 30% 20% 47%
2 7 % 15% _54%
3 18% _14% 15%
4 _22% _15% 7%
5 _14 % 2% _28%
6 10 % _18% 40%
7 26% 42% 17%
8 _10% 30% _23%
9 _3% _32% _4%
10 38% 28% 75%
AR 8.0% 6.4% 9.2%
Sd 20.1% 25.2% 38.6%
1.00
Beta 1.0
The risk free rate is 4% and the market risk premium is 5%.
Your client decided to invest R 1.4 million in blandy stock and R0.6 million in gourmange stock. What are the weights for this porfolio? What is the porfolio's beta? What is the required return for this porfolio?
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