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2. Wezi's portfolio comprise of asset X, asset Y, and asset Z whose details are as follows; Assets Amount invested (K) Beta Average return (%)

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2. Wezi's portfolio comprise of asset X, asset Y, and asset Z whose details are as follows; Assets Amount invested (K) Beta Average return (%) 22,500 1.25 12 15,000 0.85 18 12,500 1.12 -5 The market risk premium is 8%, while the yield on treasury stock is 4.65% Required: a) Calculate the average portfolio return for Wezi's portfolio b) Calculate the beta value of the portfolio and the associated portfolio required rate of return c) Briefly discuss the influence of the beta value on the assets required rate of return d) Comment on the attractiveness of Wezi's portfolio in respect of the level of exposure involved

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