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[b] McMaster Oil & Gas Company has the following investment in a portfolio; E(R) Beta Security 8% A Amt (Ghc) 100,000 200,000 300,000 400,000 12%

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[b] McMaster Oil & Gas Company has the following investment in a portfolio; E(R) Beta Security 8% A Amt (Ghc) 100,000 200,000 300,000 400,000 12% B 0.80 0.95 1.10 1.40 15% C 18% D Required; i. iii. What is the expected return on McMaster's portfolio? [5marks] What is the beta of this portfolio? [5marks] Does this portfolio have more or less systematic risk than an average asset? [2marks] Total=[12 marks]

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