Security Beta E(R) Investment

A 1.5 16% 40%

B 0 4% 60%

Compute for the following:

1. Expected portfolio return
2. Portfolio beta
3. Expected portfolio return if beta is 1
4. Expected portfolio return if beta is 1.4

5. Given the following information, compute for Beta: Rf - 6%; Rm - 15%; E(R) - 21%
6. Given the following information, compute for E(R): Rf - 4.5%; Rm - 15%; Beta - 0.9