Question
Table 1: Company Beta () E(R) Portfolio Weight EJ Holdings 1.2 11.2% 25% CS Airways 1.8 14.8% 25% KM Auto 1.0 10.1% 50% From the
Table 1:
| Company | Beta () | E(R) | Portfolio Weight |
| EJ Holdings | 1.2 | 11.2% | 25% |
| CS Airways | 1.8 | 14.8% | 25% |
| KM Auto | 1.0 | 10.1% | 50% |
From the data in Table 1,
a) Calculate the expected return of your portfolio. (2 marks)
b) Calculate the beta of your portfolio. (2 marks)
c) What conclusion can you draw from the value of the overall beta of the portfolio? (1 mark)
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert J Hughes
9th Edition
0073382329, 9780073382326
