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Suppose we have the following information: Security Amount invested Expected Return Beta Stock A $2,000 7% 0.70 Stock B 4,000 10 0.85 Stock C 6,000
Suppose we have the following information:
Security Amount invested Expected Return Beta
Stock A $2,000 7% 0.70
Stock B 4,000 10 0.85
Stock C 6,000 13 1.10
Stock D 8,000 16 1.30
- What is the expected return on this portfolio?
- What is the beta of this portfolio?
- Does this portfolio have more or less systematic risk than an average asset?
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