Kelly has investments with the following characteristics in her portfolio: Investment in Beta Amount invested Stock Q Stock R 1.5 2.0 0.85 $80,000 $50,000 $70,000 Stock S Given the risk free rate of 2% and the market return of 7%, what is the expected rate of return of Kelly's investment portfolio?
Kelly has investments with the following characteristics in her portfolio: Investment in Beta Amount invested Stock Q Stock R 1.5 2.0 0.85 $80,000 $50,000 $70,000 Stock S Given the risk free rate of 2% and the market return of 7%, what is the expected rate of return of Kelly's investment portfolio?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:3. Kelly has investments with the following characteristics in her portfolio:
Investment in
Beta
Amount invested
$80,000
$50,000
$70,000
Stock Q
1.5
Stock R
2.0
Stock S
0.85
Given the risk free rate of 2% and the market return of 7%, what is the expected rate of return of Kelly's
investment portfolio?
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