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Assume the betas for securities A, B, and C are as shown here. (Click on the icon located on the top-right corner of the data
Assume the betas for securities A, B, and C are as shown here. (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Security Beta 1.61 0.61 - 0.15 B If you have a portfolio with $20,000 invested in each of Investment A, B, and C, what is your portfolio beta? Using the portfolio beta and assuming a risk-free rate of 3%, what would you expect the return of your portfolio to be if the market earned 21.5% next year? Declined 15.5%? The beta of your portfolio is (Round to three decimal places.) The return of your portfolio to be if the market earned 21.5% is %. (Round to two decimal places and enter as a negative number if the return decreased.) If the market earned 21.5%, the value of your portfolio is $. (Round to the nearest dollar.) The return of your portfolio to be if the market declined 15.5% is %. (Round to two decimal places and enter as a negative number if the return decreased.) If the market declined 15.5%, the value of your portfolio is $ . (Round to the nearest dollar.)
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