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2.1. An investor wishes to invest R15 000 in ABC Inc. which has a beta () which is half the market B and R20 000

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2.1. An investor wishes to invest R15 000 in ABC Inc. which has a beta () which is half the market B and R20 000 in GB Corporation which has a of 2.5. What is the beta of the portfolio? (2) 2.2. Using the CAPM and SML, what is the expected rate of return for an investment with a of 1.8, a risk free rate of return of 4%, and a market rate of return of 10%? 2.3. The following information is from: Your Portfol The Market Return 12% ALSI return 10% Standard Deviation 14% Standard Deviation 12% Beta 1.2 Risk-free rate 4% Calculate Sharpe's ratio and the Treynor Measure for both Your Portfolio and The Market and compare them. (7)

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