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Question 4 A) Explain what beta measures and how investors can use beta. (10marks) B) Dr. Jackson's portfolio consists of four stocks: AZMN, 35%,

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Question 4 A) Explain what beta measures and how investors can use beta. (10marks) B) Dr. Jackson's portfolio consists of four stocks: AZMN, 35%, beta 2.4; MKR, 20%, beta 1.6; ABDE, 25%, beta 1.8; and SBUK, 20%, beta 2.1. Compute Dr. Z's portfolio beta. Does he seem to be a conservative or aggressive investor? explain (5 marks) (Total Marks 15)

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