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1. Consider the following portfolio of four stocks: Security ABC DEF GHI JKL Weight .167 .25 .233 .35 Beta 3.09 0.63 1.54 1.81 The 25

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1. Consider the following portfolio of four stocks: Security ABC DEF GHI JKL Weight .167 .25 .233 .35 Beta 3.09 0.63 1.54 1.81 The 25 - year government of Canada bond has a yield of 2% The market risk premium is 5% What is the portfolio beta? What is the expected return of each security

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