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Table 1. Average Return and Beta Stock 1 2 3 4 5 Average annual return 15% 8% 12% 50% 80% Beta 1 1.2 2.5 3
Table 1. Average Return and Beta | |||||
Stock | 1 | 2 | 3 | 4 | 5 |
Average annual return | 15% | 8% | 12% | 50% | 80% |
Beta | 1 | 1.2 | 2.5 | 3 | 3.5 |
Table 2. Portfolio A information | |||||
Stock | 1 | 2 | 3 | ||
Investment (million USD) |
If you manage a portfolio worth $100,000,000 and you choose to invest in only stock 1, 2, and 3.
What is the minimum beta for a portfolio with return equal to 13%?
No short sales allowed.
Report the answer with 2 numbers after decimal place, say 1.51
**Please show excel formulas**
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