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PORTFOLIO MANAGEMENT
SEM – I 2021-2022
Practice Problems Set – SIM and CAPM
1. Given characteristics of securities:
2. Given the beta for a particular stock is 0.9, the risk-free rate is 6.5% and
the expected market return is 12.5%, what is the expected return on the
stock?
5. Given risk-free rate of 10% and the expected market returns of 14%.
Compute the expected return for the following stocks. Where would they
fall on an SML graph?