Description
Please see the attached question. For reference, the book used is ISBN: 9781-33791-0965
Joshua owns a two-stock portfolio that invests in Celestial Crane Cosmetics Company (CCC) and Lumbering Ox Truckmakers (LOT). Three-quarters of Joshua's portfolio value consists of CCC's shares, and the balance consists of LOT's shares.
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Explanation & Answer
pleae i need the missing part
1. 17.5*0.20+10.5*0.35-14*0.45 = 0.875%
2. 24.5*0.20+14*0.35-17.5*0.45 = 1.925%
3. 0.875*0.75+1.925*0.25 = 1.1375%
H
1. 13.97%
2. Sample
3. 6.28%
4. 44.94%
+
Lower than
Beta = 1.025
Required return = 1...