CORPORATE FINANCE
CORPORATE FINANCE
12th Edition
ISBN: 9781307702804
Author: Ross
Publisher: MCG/CREATE
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Chapter 12, Problem 7QAP

a

Summary Introduction

Adequate information:

Beta of factor 1 β1 = 0.84

Beta of factor 2 β2 = 1.69

Expected return of the stocks ERS = 11%

To compute: Return on portfolio

Introduction: Return on portfolio refers to the sum total of returns earned on individual securities such as stocks, bonds, etc.

b

Summary Introduction

Adequate information:

Beta of factor 1 β1 = 0.84

Beta of factor 2 β2 = 1.69

Expected return of the stocks ERS = 11%

To compute: Return on portfolio

Introduction: Return on portfolio refers to the sum total of returns earned on individual securities such as stocks, bonds, etc.

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