Vidyalelo
Commerce · Q700

Financial Management

Graduate and Post Graduate · Commerce · question 700

Q700

High portfolio return is 6.5% and low portfolio return is 3.0% then HML portfolio will be

A.
2.16%
B.
9.50%
C.
3.50%
Answer
D.
0.4615 times

Answer: Option C

Solution

Answer: Option C
Solution:
HML Portfolio = High portfolio return - Low portfolio return
= 6.5% - 3.00% = 3.5%.