Homework Answers
1.
Calculating Risk Free Rate using CAPM Model,
0.11 - 0.0147 = Rf + 0.81(0.11 - Rf)
Rf = 3.26%
2.
Portfolio Beta = [5,000(0.90) + 4,000(1.05) + 10,000(1.25)]/(19,000)
Portfolio Beta = 1.12
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