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    Expected Return on the Above Portfolio

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    Thank you for your assistance on the following hypothetical example.

    Suppose you have invested $30,000 in the following four stocks:

    Security Amount Invested Beta
    Stock A $5,000 0.75
    Stock B $10,000 1.1
    Stock C $8,000 1.36
    Stock D $7,000 1.88

    The risk-free rate is 4 percent and the expected return on the market portfolio is
    15 percent. Based on the capital-asset-pricing model, what is the expected return on the above portfolio?

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    https://brainmass.com/business/beta-and-required-return-of-a-project/expected-return-above-portfolio-43315

    Solution Preview

    Thank you for your assistance on the following hypothetical example.

    Suppose you have invested $30,000 in the following four stocks:

    Security ...

    Solution Summary

    This expected the calcualtion of expected return on the above portfolio

    $2.19

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