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You currently own a portfolio with 3 stocks with the following information: Stock # of shares Market Price Per Share BETA E(r) A. 10 $90

You currently own a portfolio with 3 stocks with the following information:

Stock # of shares Market Price Per Share BETA E(r)

A. 10 $90 1.2 20%

B. 30 $80 1.0 15%

C. 50 $30 0.7 25%

(a) What is the market value of your portfolio?

(b) Calculate the portfolio beta. Is the portfolio more risky or less risky than the market?

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