Summary Chapter 9 Exercises Solved - Corporate Finance

wa wa

on
e
Portfolio 1
E Rp WWE Rx WYRE Ry 0 5 0 12 0 5 0.08
0.1 101 2
9 0.520.082 0.5 0 0842 0 5 0 s 0 08 0.05 0 2

Op 5.121
Portfolio 2
025 012 0 78 0 08 0 09 91
E Rpa

92 9.252 0 084075280.05 2 0.25 0.75 0.08 0.05 0 2
Opa 4 594
Jortfolio 3

E Rp 0750012 028 0 08 071 171
2
0.75200840250052 2 078 025 0.08 0.058023
Op
Op 6.374 Elke invest in more portfolios
borrowings
p
b Sketch
is T
É
O n z z y g 6 y g g Op

, a
SML

12 Marketportfolio



4

i
127 47 81
b risk premium rm rf
c E Ri 8 15
E Ri re B rm re 0.04 1.54 0 08
0.16 164



d E Ri 0.04 0 8 0 08
10 YYo
BI expected is 9 81 the investment will have a te NPV
004 0 08
e
E Rx O 112 8
B Og