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Semenov [28]
3 years ago
14

Suppose that borrowing is restricted so that the zero-beta version of the CAPM holds. The expected return on the market portfoli

o is 17%, and on the zero-beta portfolio it is 8%. What is the expected return on a portfolio with a beta of .6?
Business
1 answer:
raketka [301]3 years ago
3 0

Answer:

10.4%

Explanation:

The computation of expected return on a portfolio is shown below:-

Expected return = Risk Free return + 5%Beta ( Market Return - Risk Free return)

= 5% + 0.60 × (17% - 8%)

= 5% + 5.4%

= 10.4%

Therefore for computing the expected return on a portfolio with a beta of .6 we simply applied the above formula.

The market return less risk free return is known as market risk premium

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Answer:

The basic earnings per share for the present year is $7.36 per share

Explanation:

The basic earnings per share for the current year of Comma is computed as:

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Putting the values above:

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2 years ago
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Answer:

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