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title finance Q5. Mr. Gill has inherited the following portfolio: 1 Share Share price No. of shares Beta ABCplc 1.50 20,000 0.70 DEFplc 2.50 10,000

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Q5. Mr. Gill has inherited the following portfolio: 1 Share Share price No. of shares Beta ABCplc 1.50 20,000 0.70 DEFplc 2.50 10,000 1.20 GHIplc 1.80 20,000 1.10 What is the beta on this portfolio? b. If the risk-free rate of return is 7.5 per cent and the risk premium on shares over Treasury bills has been 6 per cent what is the expected return on this portfolio over the next year? a

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