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14. Mr. Zahid has inherited the following portfolio: (2+1 = 3 marks) Share Share price No. of shares Beta ABC OMR 1.40 20000 0.80 DEF
14. Mr. Zahid has inherited the following portfolio: (2+1 = 3 marks) Share Share price No. of shares Beta ABC OMR 1.40 20000 0.80 DEF OMR 2.20 10000 1.20 GHI OMR 1.90 20000 1.10 a). What is the beta on this portfolio? (2 marks) b). If the risk-free rate of return is 7.5 per cent and the risk premium on shares over Treasury bills has been 4 per cent what is the expected return on this portfolio over the next year? ( 1 mark)
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