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% (1.5*12.%-14.%)/(1.5-1)
Answer: risk free rate= 8. %
c. What do you think the Beta (?) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain.
The beta would be close to 1
This is because if the stocks are chosen randomly, they would be a fair representation of the market and the market beta is 1
3...
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c. What do you think the Beta (?) of your portfolio would be if you owned half of all the stocks traded on the major exchanges? Explain.
The beta would be close to 1
This is because if the stocks are chosen randomly, they would be a fair representation of the market and the market beta is 1
3...
Essay fragment
General points of the essay
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