Explore BrainMass

Explore BrainMass

    I need help finding the answer to a question on Risk and return

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    I need your help with this question its on Risk and Return and it is a True or False and I need your help explaining or qualifying the answer.

    a. The expected rate of return on an investment with a beta of 2 is twice as high as the expected rate of return of the market portfolio.

    If there are abreviations or formulas used on the answer, can you help me with the meaning.

    Thank you your help is GREATLY aprreciated.

    © BrainMass Inc. brainmass.com December 24, 2021, 5:10 pm ad1c9bdddf

    Solution Preview

    The expected return on an investment is given by Capital Asset Pricing Model
    r = rf + beta*(rm-rf)
    Where r= expected return on ...