Homework answers / question archive / Consider two large diversified portfolios A and B

Consider two large diversified portfolios A and B

Finance

Share With

Consider two large diversified portfolios A and B. Portfolio A has a beta of 1.0 and an expected return of 13%. Portfolio B has a beta of 2.0 and an expected return of 26%. The risk-free rate is 4%. Are the expected returns and betas consistent with a single-factor model? O No O Yes O Cannot be determined