Question
a.) Your portfolio consists of $59,015 invested in Stock X and $49,741 invested in Stock Y. Stock X has a beta of 0.85 and Stock
a.) Your portfolio consists of $59,015 invested in Stock X and $49,741 invested in Stock Y. Stock X has a beta of 0.85 and Stock Y has a beta of 1.15. If the return on Treasury bills is 2.4% and the return on the S&P500 Index is 6.3%, what is the return on your portfolio?
Enter your answer as a decimal with a leading zero and 4 decimal places of precision (i.e. 0.1234)
b.) Sammy Bearkat has a 2-stock portfolio with $121,975 is invested in Stock A with a beta of 1.51 and $83,920 invested in Stock B with a beta of 0.9. What is Sammy's portfolio's beta?
Enter your answer as a number with a number preceding the decimal and 2 decimal places of precision (i.e. 1.23 or 0.77)
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