Expected rate of return on the market portfolio

Related BrainMass Solutions

• Investing in Market Based Portfolio

  - risk free rate) =6%+1.5*(12%-6%)=15% The expected return on portfolio B of 14% is less than the required rate of return of 15%.

• Capital Asset Pricing Model (CAPM)

  Find the Expected Rate of Return on the Market Portfolio given that the Expected Rate of Return on Asset "i" is 12%, the Risk-Free Rate is 4%, and the Beta (b) for Asset "i" is 1.2. b.

• Finding the Standard Deviation of a Portfolio Using Beta

  Once investor creates a portfolio on the efficient frontier with an expected return of 10%: Required return on a security (or portfolio) = Risk-free rate + (Beta*(Expected return on the market - risk-free rate)) .10 = .07 +(Beta*(.12-.07)) .10 =

• What is the expected rate of return on the portfolio using CAPM?

  65290 What is the expected rate of return on the portfolio using CAPM? A portfolio that combines the risk-free asset and the market portfolio has an expected return of 25 percent and a standard deviation of 4 percent.

• What expected rate of return would a security earn if it had a 0.6 correlation with the market portfolio and a standard deviation of 3 percent?

  A portfolio that combines the risk-free asset and the market portfolio has an expected return of 22 percent and a standard deviation of 5 percent. The risk-free rate is 4.9 percent, and the expected return on the market portfolio is 19 percent.

• Capital-asset pricing model

  A portfolio that combines the risk-free asset and the market portfolio has an expected return of 22 percent and a standard deviation of 5 percent. The risk-free rate is 4.9 percent, and the expected return on the market portfolio is 19 percent.

• Securities: What expected rate of return would a security earn if it had a 0.6 correlation with the market portfolio and a standard deviation of 3 percent?

  A portfolio that combines the risk-free asset and the market portfolio has an expected return of 22 percent and a standard deviation of 5 percent. The risk-free rate is 4.9 percent, and the expected return on the market portfolio is 19 percent.

• Capital Asset Pricing Model- expected return, volatility

  Suppose the risk free rate is 5%, Microsoft stock has an expected return of 12% and a volatility of 40%, and the market portfolio has an expected return of 10% and a volatility of 18%. Under the CAPM assumptions, a.

• An Explanation of the Expected Rate of Return

  67194 An Explanation of the Expected Rate of Return A portfolio that combines the risk-free asset and the market portfolio has an expected return of 22 percent and a standard deviation of 5 percent.

• TF Risk and Return: expected rate of return, market risk, underpriced, volatile,

  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.