Suppose Avis Budget Group stock has a beta of 2.65, whereas Costco stock has a beta of 0.51. If the risk-free interest rate is 3.82% and the expected return of the market portfolio is 11.93%, what is the expected return of a portfolio that consists of 45% Avis Budget Group stock and 55% Costco stock, according to the CAPM? The beta of the portfolio is (Round to two decimal places.) The expected return of the portfolio is %. (Round to two decimal places.) D

Suppose Avis Budget Group stock has a beta of 2.65, whereas Costco stock has a beta of 0.51. If the risk-free interest rate is 3.82% and the expected return of the market portfolio is 11.93%, what is the expected return of a portfolio that consists of 45% Avis Budget Group stock and 55% Costco stock, according to the CAPM? The beta of the portfolio is (Round to two decimal places.) The expected return of the portfolio is %. (Round to two decimal places.) D

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter6: Risk And Return

Section: Chapter Questions

Problem 14P

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