Stock XYZ has a beta of 1.3 and an expected return (rs) of 6.5%. The risk-free rate (FRF) is currently 3.0%. What is the expected return on a portfolio that is 3/4 invested in Stock XYZ and 1/4 invested in the risk-free ass Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)

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
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Stock XYZ has a beta of 1.3 and an expected return (rs) of 6.5%. The risk-free rate (TRF) is currently 3.0%.
What is the expected return on a portfolio that is 3/4 invested in Stock XYZ and 1/4 invested in the risk-free asset?
Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)
Transcribed Image Text:Stock XYZ has a beta of 1.3 and an expected return (rs) of 6.5%. The risk-free rate (TRF) is currently 3.0%. What is the expected return on a portfolio that is 3/4 invested in Stock XYZ and 1/4 invested in the risk-free asset? Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)
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