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7. You are considering investing your savings into a share portfolio. You have identified the following shares as suitable candidates for investment: Share A Ltd

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7. You are considering investing your savings into a share portfolio. You have identified the following shares as suitable candidates for investment: Share A Ltd B Ltd C Ltd Expected Return 6% 9% Beta (B) 0.8 1.0 15% 1.2 a. What is the expected return for a portfolio that has an equal weighting of each company's shares? (2 marks) b. What is the Beta of a portfolio that has an equal weighting of each company's shares? (2 marks)

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