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investment in stock i weight of stock i = total value of your stock portfolio i) Use the average return of each stock in

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investment in stock i weight of stock i = total value of your stock portfolio i) Use the average return of each stock in part (d) and the weight in part (h), calculate the expected return of your portfolio on April 21st, 2017. j) For your portfolio on April 21st, 2017, get each stock's beta (B) from Yahoo! Finance. Use CAPM model to calculate expected return for each stock. Use average monthly return of S&P 500 index in 2016 as the market return. Use the 3-month T-bill rate as risk-free rate. k) Use the expected return of each stock in part (j) and the weight in part (h), calculate the expected return of your portfolio on April 21st, 2017. 1) Calculate the beta of your stock portfolio using the following equation, stock portfolio beta: = weight of stock i beta of stock i In other words, portfolio beta is the weighted average of each stock's beta. Is the beta of your stock portfolio greater than 1 or less than 1? What does that imply about the volatility of your portfolio compared to the volatility of market portfolio? m) Use CAPM model and portfolio beta in part (1) to calculate the expected return of your stock portfolio. Is the answer similar to the one in part (k)?

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