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What must be the beta of a portfolio with e(rp) = 13.1?

User Ehennum
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1 Answer

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Final answer:

To calculate the beta of a portfolio, we need the expected return of the market.

Step-by-step explanation:

The beta, β, of a portfolio can be calculated using the formula:

β = E(rp) / E(rm)

where E(rp) is the expected return of the portfolio and E(rm) is the expected return of the market. In this question, the student has given E(rp) = 13.1. To find the required beta, we need the expected return of the market, E(rm). Since the student has not provided that information, it is not possible to calculate the beta.

User Masewo
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