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QUESTION
suppose auto desk stock has a beta of 2.20, whereas Cosco stock has a beta of 0. If the risk free interest rate is 4.5% and the expected return of...
suppose auto desk stock has a beta of 2.20, whereas Cosco stock has a beta of 0.69. If the risk free interest rate is 4.5% and the expected return of the market portfolio is 12.0%, what is the expected return of a portfolio that consists of 60% autodesk and 40% Cosco stock, according to CAPM?
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According to CAPM(Capital assets pricing Model),Expected return on stock = Rf+beta*(Rm-Rf) a)Wxpected return on stock of:Auto Desk = 21.00% Cosco = 9.68% Where,RfRm == Where,RfRmBeta ===...