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und Mr. Zahid has inherited the following portfolio: (2+1 =3 marks) Share Share price No. of shares Beta ABC OMR 1.40 20000 0.80 DEF OMR
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Mr. Zahid has inherited the following portfolio: (2+1 =3 marks)
| Share | Share price | No. of shares | Beta |
| ABC | OMR 1.40 | 20000 | 0.80 |
| DEF | OMR 2.20 | 10000 | 1.20 |
| GHI | OMR 1.90 | 20000 | 1.10 |
- What is the beta on this portfolio? ( 2 marks)
- If the riskfree rate of return is 7.5 per cent and the risk premium on shares over Treasury bills has been 4 per cent what is the expected return on this portfolio over the next year? ( 1 mark)
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