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Show your calculations You are the financial advisor of Mr. Bean and he asks from you to answer the two questions below based on the
Show your calculations
You are the financial advisor of Mr. Bean and he asks from you to answer the two questions below based on the given table. Investment Type Shares Price per Expected share return Stock A 100 shares $30 7% Stock B 200 shares $10 10% Treasury Ball Rate 3% Market Return 17%
a) Estimate betas of stock A and stock B.
B) Mr. Bean would like to own a portfolio consisting of stock A (100 shares), stock 8 (200 shares), and $3,000 in Treasury Bills. Estimate beta and the expected return of this portfolio
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