What is the expected return of a portfolio

Assignment Help Accounting Basics
Reference no: EM131867540

Question - Suppose Autodesk stock has a beta of 2.10 whereas Costco stock has a beta of 0.72. If the risk-free interest rate is 3 % and the expected return of the market portfolio is 13.0 % what is the expected return of a portfolio that consists of 70 % Autodesk stock and 30 % Costco stock, according to the CAPM?

Reference no: EM131867540

Questions Cloud

Case study - pepsi vs coca-cola : Preface by a recap of what the article/case study is about, include your analysis, if you agree or disagree with the conclusions made, and why/why not
Explain different types of learning activities : Discuss the resource requirements of face-to-face training sessions relative to other types of learning activities.
What are some of these types of business structures : What are some of these types of business structures? How can the thought of global expansion impact business decisions made locally
What would be some strategies you could use : Discuss a time when you were rejected. This time when you were rejected should be something that was emotionally upsetting to you because the time you were.
What is the expected return of a portfolio : What is the expected return of a portfolio that consists of 70 % Autodesk stock and 30 % Costco stock, according to the CAPM
Strategic importance of layout decisions : Discuss the strategic importance of layout decisions. How important as these decisions in terms of a company's long-term profitability goals?
Describe an encounter with person from a culture : Describe an encounter with person from a culture or ethnic group different from you won. Include a bit of research that sheds light on your encounter.
Why you think good decision-making skills are important : Discuss why you think good decision-making skills are important managers today in shaping organizational behavior, particularly when operating in an internation
What is sharp revenue from rent for the current year : The adjusted balance in the Unearned Rent account increased from $345,000 to $495,000 during the year. What is Sharp's revenue from rent for the current year

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd