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FIN220 SEM 191 2. Selena invests the following sum of money in common stock having expected returns as follows: Beta of Stock Common Stock Amount

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FIN220 SEM 191 2. Selena invests the following sum of money in common stock having expected returns as follows: Beta of Stock Common Stock Amount Invested in Expected Return 0.6 WOOPS KBOOM JUDY UPDWN SPROUT RINGG7 EIEIO 5.000 10.000 6,000 8 000 4,500 ,500 9.000 0.14 0.16 0.17 0.13 0.20 0.15 0.18 0.8 0.85 OS 0.65 09 W e spected return on her portfolio C o ntabel b) Callonate the systemati r a Does the portro m m ared to the average market portfolio? d) If foruro w burn th c oming to C al Asset Pricine Model (CAPMY e) If Selena wants to get 12% return from this portfolio, is this the appropriate portfolio for her? Explain your reason using your answer in (A) and (D). If she still wants to invest in this portfolio, what should she do in terms of adjusting the weight of the stock? Give your answer based on the amount invested in UPDWN and SPROUT stocks FIN220 SEM 191 2. Selena invests the following sum of money in common stock having expected returns as follows: Beta of Stock Common Stock Amount Invested in Expected Return 0.6 WOOPS KBOOM JUDY UPDWN SPROUT RINGG7 EIEIO 5.000 10.000 6,000 8 000 4,500 ,500 9.000 0.14 0.16 0.17 0.13 0.20 0.15 0.18 0.8 0.85 OS 0.65 09 W e spected return on her portfolio C o ntabel b) Callonate the systemati r a Does the portro m m ared to the average market portfolio? d) If foruro w burn th c oming to C al Asset Pricine Model (CAPMY e) If Selena wants to get 12% return from this portfolio, is this the appropriate portfolio for her? Explain your reason using your answer in (A) and (D). If she still wants to invest in this portfolio, what should she do in terms of adjusting the weight of the stock? Give your answer based on the amount invested in UPDWN and SPROUT stocks

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