Suppose you have $3,600 to invest in Securities A and B.Security A has an expected return of 6% and a beta of 0.5.Stock B has an expected return of 20% and a beta of 1.8.What is the expected return on the portfolio if the portfolio beta is 2.0?
A)24.00%
B)23.65%
C)22.15%
D)22.22%

Question

Quizplus · Accepted Answer

The Answer of Suppose you have $3,600 to invest in Securities A and B.Security A has an expected return of 6% and a beta of 0.5.Stock B has an expected return of 20% and a beta of 1.8.What is the expected return on the portfolio if the portfolio beta is 2.0?
A)24.00%
B)23.65%
C)22.15%
D)22.22%

Suppose You Have $3,600 to Invest in Securities a and B.Security