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7). Mr. Ahmed has inherited the following portfolio: Share No. of Shares Beta Star plc Moon plc Sun plc 22.876 19.809 35.291 0.65 1.45 1.12.

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7). Mr. Ahmed has inherited the following portfolio: Share No. of Shares Beta Star plc Moon plc Sun plc 22.876 19.809 35.291 0.65 1.45 1.12. Share Price $1.25 $2.75 $1.95 a. What is the beta of this portfolio? b. If the risk-free rate of return is 6.5 per cent and the risk premium on shares over the Treasury bills has been 5 per cent what is the expected return on this portfolio over the next year

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