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How the weight calculated? 7. After coming to a final decision, Worldwide Widget Manufacturing, Inc., has a stock portfolio that consists of the following positions,
How the weight calculated?
7. After coming to a final decision, Worldwide Widget Manufacturing, Inc., has a stock portfolio that consists of the following positions, with betas shown for each stock. You've been asked to calculate and evaluate the risk of the portfolio beta and the required return for your portfolio. The market return is expected to be 11 percent, and the risk-free rate is 6 percent. What's the beta of the portfolio? Is this a high- or low-risk portfolio? What's the required return of the portfolio? Fill in the position, weight, and oortfolio beta columns for each company in the table above. Show your calculationsStep by Step Solution
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