Question
. The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock Proportion in the portfolio Beta Gazprom 0.25 1.4
. The Blackwell mutual fund has a stock portfolio that are consists of the following companies.
| Stock | Proportion in the portfolio | Beta |
| Gazprom | 0.25 | 1.4 |
| Shell | 0.3 | 1.6 |
| Exxon Mobil | 0.3 | 1.5 |
| CNOOC | 0.15 | 1.8 |
a) Determine the portfolio beta
b) If the risk free rate is 9% and required rate is 18%, what is the required return on the portfolio?
c) If you sell all the investment in Shell and purchase an equivalent amount in CNOOC, what will be the beta of restructured portfolio?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Bank Funding Financial Instruments And Decision Making In The Banking Industry
Authors: Santiago Carbó Valverde , Pedro Jesús Cuadros Solas , Francisco Rodríguez Fernández
1st Edition
3319307002,3319307010
