Question:

Currently, the risk-free rate, rRF, is 5% and the required return on the market,rM,is 11%.?

by Guest55586  |  earlier

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currently, the risk-free rate, rRF, is 5% and the required return on the market,rM,is 11%. Your portfolio has a required rate of return of 9%. Your brother has a portfolio with a beta that is twice the beta of your portfolio. What is the required rate of return on you brother's portfolio

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2 ANSWERS


  1. 13%  -- I believe it would be the "expected" rate of return, as determined by CAPM.

    my portfolio has a beta of 0.67; my brothers is 1.33


  2. 15%

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