Investments

[joaber20]

General Electric has a beta of 1, and Wendy's International has a beta of 0.5. The market return is expected to be 10%, and the risk-free rate is 4%. Calculate the expected return for a portfolio with 50% invested in GE and 50% invested in Wendy's.


Thanks

 

[tkhunny]

You should demonstrate your own efforts.

For starters, not all notation or nomenclature is standardized. If you just gowith "beta", with no definition of explanation, how do you know that some answer will be using the same "beta" that you intended?