1. The beta of the portfolio is

A multiple-choice question with one possible answer.(Required)

1. 0.8
2. 1
3. 1.5
4. 3
5. 2

2. The expected return of the portfolio is

A multiple-choice question with one possible answer.(Required)

1. 12%
2. 4%
3. 14%
4. 10%
5. 8%
6. 6%

Example : Investment weights: A (50%) and B (50%) The covariance between A and market portfolio is 0.04. The covariance between B and market portfolio is 0.02. The variance of market portfolio is 0.02. The expected return of market portfolio is 10%. The risk-free rate is 2% Calculate beta of the portfolio and it expected return