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Julia has created a portfolio of three Austrian companies: Welfare Company, Marine Company, and Fredrik Bank. You have the following information: Friderik Bank shares are
Julia has created a portfolio of three Austrian companies: Welfare Company, Marine Company, and Fredrik Bank. You have the following information: Friderik Bank shares are traded on the market at fair value. Jensen Alpha for Welfare Company is 8%, for Marine Company is -7%, and for the portfolio is 5%. The expected return of Welfare Company is 20% and for Marine Company is 8%, and for the portfolio is 15%. The return on treasury bills is 2% and the market return is 10%. Find the portfolios beta? (a1)
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