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The following information is for the next three questions. Investor P has the following portfolio: Stock Amount Return Beta A 10,000 10% 1.2 B 30,000

The following information is for the next three questions. Investor P has the following portfolio:

Stock

Amount

Return

Beta

A

10,000

10%

1.2

B

30,000

12%

0.8

C

20,000

15%

1.4

D

40,000

20%

2.0

01 - What are the weights of these four stocks in the portfolio?

A.

w1= 20%, w2= 30% w3 = 20% w4= 10%

B.

w1= 10%, w2= 40% w3 = 20% w4= 10%

C.

w1= 10%, w2= 30% w3 = 20% w4= 40%

D.

w1= 10%, w2= 30% w3 = 5% w4= 25%

02 - What is the expected return of the portfolio?

A.

15.6%.

B.

12.8%

C.

18.6%

D.

11.2%

03 - What is the Beta of the portfolio?

A.

1.6

B.

2.3

C.

1.1

D.

0.95

E.

1.44

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