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PLEASE HELP ME WITH THIS QUESTION, THANK YOU!! AND HERE IS THE PHOTO OF THE QUESTION Consider a portfolio consisting of the following three stocks:

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PLEASE HELP ME WITH THIS QUESTION, THANK YOU!!

AND HERE IS THE PHOTO OF THE QUESTION

image text in transcribed
Consider a portfolio consisting of the following three stocks: a . The volatility of the market portfolio is 10% and it has an expected return of 8%. The risk-free rate is 3%. a. Compute the beta and expected return of each stock. b. Using your answer from part to), calculate the expected return of the portfolio. c. What lS the beta of the portfolio? If. Using your answer from part (c), calculate the expected return of the portfolio and ven'fy that it matches your answer to part (b). a. Compute the beta and expected return of each stock. (Round to two decimal places.) Portfolio Weight Volatility Correlation Beta Expected Return (A) (B) (C) (D) (E) HEC Corp 0.21 12% 0.41 % Green Midget 0.41 25% 0.65 % AllVe And Well 0 38 11% 0.4? % b. Using your answer from part to), calculate the expected return of the portfolio. The expected return of the portfolio l5 "/0. (Round to two decimal places.) c. What lS the beta of the portfolio? The beta of the portfolio is (Round to three decimal places.) :1. Using your answer from part to), calculate the expected return of the portfolio and ven'fy that it matches your answer to part (b). The expected return of the portfolio lS %. (Round to two decimal places.)

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