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The stock has the following returns and probabilities of those returns. What is the expected return and risk of the stock using the data? Use
The stock has the following returns and probabilities of those returns. What is the expected return and risk of the stock using the data? Use your knowledge (weighted average of returns to calculate expected return and standard deviation of returns to calculate risk).
return | probability |
6% | 70% |
15% | 30% |
Also, How do you calculate portfolio beta? I have this problem and have not been able to calculate the correct answer.
Using the table below what is the beta of the portfolio?
You have 50 shares of X; 80 shares of Y; 75 shares of Z
Stock | Price | Beta |
X | $30 | 1.10 |
Y | $20 | 0.92 |
Z | $60 | 1.48 |
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