You Have Two Portfolios,A and B

question 57

Essay

You have two portfolios,A and B.Portfolio A has an expected return of 20 percent and a beta of 1.4.Portfolio B has an expected return of 25 percent and a beta of 1.2.Is this scenario consistent with the CAPM? Why or why not?

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Definitions:

Dynamic RAM (DRAM)

A type of random access memory that stores each bit of data in a separate capacitor within an integrated circuit, requiring regular refreshing.

Task Manager

A system monitor program used to provide information about the processes and programs running on a computer, as well as the general status of the computer.

Filename

The designated name for a file that identifies it on a storage device or system.

File Shortcut

A pointer or link to a file or folder located elsewhere on a computer's file system, allowing quick access without navigating the original location.