Suppose Intel stock has a beta of 2.16, whereas Boeing stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, what is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock, according to the CAPM?

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Suppose Intel stock has a beta of 2.16, whereas Boeing stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, what is the expected return of a portfolio that consists of 60% ...

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Response help in determining Risk Premium using Capital Asset Pricing Model

The risk free rate is 5% and the market riskpremium is 10%. The Ka equals 25% and the Kb equals 20%. What is the beta of a portfolio that contains only stocks A and B if 1/5 of funds are invested in A and the rest in B?
Instructors answer is Beta of portfolio equals 1.6
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Suppose Intel stock has a beta of 2.16, whereas Boeing stock has a beta of 0.69. If the risk-free interest rate is 4% and the expected return of the market portfolio is 10%, what is the expected return of a portfolio that consists of 60% Intel stock and 40% Boeing stock, according to the CAPM?
Portfolio beta =
Expected return

Assume that Rf = 5 and Km=10.5 percent. Compute Kj for the following betas, using an increase in interest rates changes Rf to 6.0 percent, and the market riskpremium (Km-Rf) changes to 7.0 percent. Compute Kj for the three betas of 0.6, 1.3 and 1.9

Consider the following two stocks:
Beta Expected Return
Merck Pharmaceutical 1.4 25%
Pizer Drug Corp 0.7 14%
Assume the capital-asset-pricingmodel holds. Based on the CAPM, what is the risk-free rate? What is the expected return on the market portfolio?

1. The expected return on the stock market is 10% with a standard deviation of 27%. The risk-free rate is 3%. AB Corp. has covariance (COV) of 0.075 with the market return. The stock currently trades at $100 and is expected to increase to $114. What is the required return on the stock?

Suppose the risk free rate is 4%. Suppose also that the expected return required by the market for a portfolio with a beta of 1.0 is 9%. Suppose you consider buying a share of stock at a price of $42. The stock is expected to pay a dividend of $3 next year and to sell then for $41. The stock risk has been evaluates at beta of

Using the CAPM equation, if the risk free rate is 1% per annum, the market riskpremium is 4% and a stocks beta is 1.1, what is the expected return on the stock? If the stock is suddenly seen as less risky and it moves one to one with the market (ie its beta=1) what would be the required return?
Please provide clear working

Levine Manufacturing Inc. is considering several investments. The rate on Treasury bills is currently 6.75 percent, and the expected return for the market is 12 percent. Please show all calculations, formulas, and detail and send via Word.
What should be the required rates of return for each investment (using the CAPM)?
SECU

Tony is wondering how much risk he must accept in order to generate a reasonable return on his portfolio. The risk-free return currently is 5 percent. The return on the market portfolio is 16 percent. Use the CapitalAssetPricingModel to calculate the beta coefficient associated with each of the following portfolio returns.

In the CapitalAssetPricingModel (CAPM) why do we use beta ß, rather than standard deviation of returns, as our measure of risk? Why is it that the formula for beta fits in with the meaning of beta as non-diversitifiable risk?