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    portfolio (weighted average) expected rate of return

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    You are considering investing in a portfolio of the common stocks of four publicly-traded companies with betas as follows:

    ABC: 0.7

    DEF: 0.9

    GHI: 1.3

    JKL: 1.9

    If the risk-free rate is 4% and the market rate is 10%, what is your expected rate of return in:

    ABC?
    DEF?
    GHI?
    JKL?

    e. If your portfolio is 20% in ABC, 30% in DEF, 30% in GHI, and 20% in JKL, what is your portfolio (weighted average) expected rate of return?

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    https://brainmass.com/economics/risk-analysis/portfolio-weighted-average-expected-rate-return-256401

    Solution Preview

    You are considering investing in a portfolio of the common stocks of four publicly-traded companies with betas as follows:

    ABC: 0.7

    DEF: 0.9

    GHI: 1.3

    JKL: 1.9 ...

    Solution Summary

    The portfolio (weighted average) expected rate of return is noted.

    $2.19