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a) Explain the 2 ways an investor can obtain a return in the equity market. (2 x 2 = 4 marks) ANSWER a): b) Calculate

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a) Explain the 2 ways an investor can obtain a return in the equity market. (2 x 2 = 4 marks) ANSWER a): b) Calculate the portfolio beta if an investor holds the following shares:(2 marks) Westpac Bank $15,000 Beta 1.35 Domino's Pizza $9,000 Beta 1.5 Vodafone $12,500 Beta 0.95 ANSWER b): c) If the investor added to the portfolio with a purchase of $10,000 worth of shares in Coles with a beta of 1.8, what impact would that purchase have on the risk structure of the portfolio? (Hint: Calculate the new portfolio beta and explain your answer.) (5 marks) ANSWER c)

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