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Question 6 A portfolio consisting of five securities could have its beta factor computed as follows: Beta factor Percentage of Security of security portfolio %

Question 6 A portfolio consisting of five securities could have its beta factor computed as follows: Beta factor Percentage of Security of security portfolio % A Inc 0.90 20 B Inc 1.25 10 C Inc 1.10 15 D Inc 1.15 20 E Inc 0.70 100 35 If the risk-free rate of return is 12% and the average market return is 20%. Calculate the required return on the various securities and the portfolio 25

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