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Analyze a portfolio of stocks and want to determine both the expected rate of return and the expected Beta. Provide them and then explain what
Analyze a portfolio of stocks and want to determine both the expected rate of return and the expected Beta. Provide them and then explain what can be done to LOWER the risk in this portfolio.
Stock | Weight | Exp. Return | Beta |
Goog | 0.45 | 15% | 1.35 |
XOM | 0.25 | 12% | 1.25 |
FB | 0.15 | 10% | 1.75 |
LUV | 0.15 | 8% | 1 |
*SHOW ALL WORK - requirement
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