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Score: 0 of 2 pts 6 of 6 (0 complete) HW Score: 0%, 0 of 12 pts B8-23 (book/static) Question Help (Portfolio beta and CAPM)

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Score: 0 of 2 pts 6 of 6 (0 complete) HW Score: 0%, 0 of 12 pts B8-23 (book/static) Question Help (Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: . a. What is the beta on each portfolio? b. Which portfolio is riskier? c. If the risk-free rate of interest were 4 percent and the market risk premium were 5 percent, what rate of return would you expect to earn from each of the portfolios? a. The beta on the first portfolio is (Round to three decimal places.) Enter your answer in the answer box and then click Check Answer. ? 4 Permaining Clear All Check Answer Asset A B Beta 2.50 1.00 0.50 - 1.50 Portfolio Weightings First Portfolio Second Portfolio 10% 40% 10% 40% 40% 10% 40% 10%

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