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You have a $500,000 portfolio consisting of Disney, Netflix, and Walmart. You put $200,000 in Disney, $135,000 in Netflix, and the rest in Walmart. Disney,
You have a $500,000 portfolio consisting of Disney, Netflix, and Walmart. You put $200,000 in Disney, $135,000 in Netflix, and the rest in Walmart. Disney, Netflix, and Walmart have betas of 1.10, 1.45 and 1.03, respectively. The risk-free return is 3.6% and the market return is 8.9% 1) What is your portfolio beta? 2) which is the expected return for each of the stocks according to the CAPM? 3) Which is the expect return of your portfolio according to your portfolio beta?
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