2) The portfolio below has the following common stock:

Company Expected Return Beta

East Corp $25,000 7.5% .5

West Corp $50,000 9.25% 2.0

North Corp $75,000 6.50% -.5

South Corp $100,000 8.0% 1.25

$250,000

The expected return of this portfolio is (Save the weights used for this problem as you will need them to calculate the beta in problem 3)

	a.6.50%
	b.6.75%
	c. 7.50%
	d. 7.75%
	e. 8.50%

3)

Company Expected Return Beta

East Corp $25,000 7.5% .5

West Corp $50,000 9.25% 2.0

North Corp $75,000 6.50% -.5

South Corp $100,000 8.0% 1.25

$250,000

From problem 2, what is the portfolio s beta?

	a. .70
	b. .75
	c. .80
	d. .85
	e. .90