Question
Asset Invested Amount Beta Expected Return NewTech Corporation $32,000 1.52 ? % Can-Learn Company $25,000 0.85 ? % Daily Dairy Corporation $20,000 1.05 ? %
Asset Invested Amount Beta Expected Return NewTech Corporation $32,000 1.52 ? % Can-Learn Company $25,000 0.85 ? % Daily Dairy Corporation $20,000 1.05 ? % Camp Nature Company $23,000 1.25 ? % 1. Using CAPM, calculate the expected return for each asset. Assume risk-free rate of 3% and an expected market return of 15%. Clearly display the formula, relevant values and final answer. Express final answer in two decimal places.
2.Calculate the expected return on this portfolio. Clearly display the formula, relevant values and final answer. Express final answer in two decimal places.
3. Calculate the portfolio beta for this portfolio. Clearly display the formula, relevant values and final answer. Express final answer in two decimal places
4. Comment on whether this portfolio has more or less systematic risk than that of the market. Use relevant figures to support your answer
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