What is the expected return on the portfolio-risk-free rate

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Reference no: EM13972028

Company X owns a portfolio that is invested 19.04 percent in stock A, 39.26 percent in stock B, and the remainder in stock C. The expected returns on these stocks are 10.36 percent, 13.86 percent, and 10.62 percent, respectively. What is the expected return (in percents) on the portfolio?

Stock A has an expected return of 13.99 percent and a beta of 1.3. Stock B has an expected return of 10.01 percent and a beta of 0.91. Both stocks have the same reward-to-risk ratio. What is the risk-free rate (in percents)?

Reference no: EM13972028

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