
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN: 9781337514835
Author: MOYER
Publisher: CENGAGE LEARNING - CONSIGNMENT
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Transcribed Image Text:A pension fund currently invests in five different stocks as follows:
Stock
A B
C
D
E
Invested Amount
$2 mil $3 mil
$2 mil
$2 mil $1 mil
beta
1.7
Expected Return
7% 15.5%
4.5%
12% 14.5%
It is assumed that the CAPM holds, and the market is in equilibrium. The beta of
the portfolio is 0.76. Fill in the blanks.
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