Question
An investor currently holds the following portfolio of 4 stocks, each having equal weight: Stock Expected Return (rs) Beta A 14.90% 1.70 B 8.25% 0.75
An investor currently holds the following portfolio of 4 stocks, each having equal weight:
Stock Expected Return (rs) Beta
A 14.90% 1.70
B 8.25% 0.75
C 11.40% 1.20
D 6.50% 0.50
a. What is the portfolios expected return?
b. What is the portfolios beta risk? Is it more or less risky than the market?
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Financial Management
Authors: Geoffrey Knott
4th Edition
1403903824, 9781403903822
