› CFA › CFA Level 1 › Question of the Week – Portfolio Management Search for:Search Button CFAFRMCAIACareersLounge GeneralLevel 1Level 2Level 3 Question of the Week – Portfolio Management Add A Reply Login Sign Up This topic has 4 replies, 4 voices, and was last updated Mar-187:04 am by LeChiffre. Author Posts BrentSchneiderParticipant CFA Level 1 25 Mar 2018 at 8:15 am Up4:: Ooops. I forgot to subtract my 5%. 18.95% is answer. hairyfairyParticipant Undecided 26 Mar 2018 at 4:58 am Up4:: Completely went off track here. I’m not myself today… AdaptPrepParticipant Undecided 28 Mar 2018 at 7:42 am Up4:: beta(RF) = 0 beta(M) = 1 beta(US) = 2.5 beta(portfolio) = 0.2(0) + 0.3(1) + 0.5(2.5) = 1.55 Expected return (CAPM) = 0.05 + 1.55(0.14 – 0.05) = 18.95% LeChiffreParticipant CFA Level 2 29 Mar 2018 at 7:04 am Up3:: (0.2*0.05)+(0.3*0.14)+(0.5)*(0.05+(2.5)*(0.14-0.05)) = 0.1895 Author Posts Viewing 3 reply threads You must be logged in to reply to this topic. Log In Username: Password: Keep me signed in Register Log In