Multiple Choice
The riskless rate is 5.00% and the return on the market is 10.00%. If you form a portfolio with a beta of 0.8, what should be your rate of return according to the CAPM?
A) 8.00%
B) 8.50%
C) 9.00%
D) 9.50%
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q33: Empirical studies suggest four possible economic factors
Q34: If a security's market price were to
Q35: A problem with a portfolio return computation
Q36: The two major standards of risk are:
Q37: The multifactor CAPM says that investors want
Q39: Describe two of the three major results
Q40: Which of the below statements is TRUE?<br>A)
Q41: The first behavioral finance theme involves the
Q42: In the development of the CAPM, a
Q43: Empirically, a comparison of the distribution of