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Suppose that you have the following 5 stocks in a portfolio. in the table below are listed the amount you intend to invest in each

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Suppose that you have the following 5 stocks in a portfolio. in the table below are listed the amount you intend to invest in each stock, your forecast of the expected return for each stock, and each stock's Beta.

1) which of the stocks would be expected to move more than the market return? Explain

2) Calculate the expected return of the portfolio

3) calculate the beta of the portfolio. explain what this means

4) how would you expect this portfolio to perform in a market downturn? explain?

Stock Amount invested ($) Expected Return Beta 1 $1000 .08 .80 2 $2000 .12 .95 3 $3000 .15 1.10 4 $4000 .18 1.4

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