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You have a portfolio of 4 stocks with the following metrics: Company % of Portfolio Expected Stock Return Stock Beta A 10% 15% 0.70 B
You have a portfolio of 4 stocks with the following metrics:
Company | % of Portfolio | Expected Stock Return | Stock Beta |
A | 10% | 15% | 0.70 |
B | 20% | 10% | 1.10 |
C | 40% | 9% | 1.25 |
D | 30% | 11% | 1.60 |
Total | 100% | ? | ? |
A. Please calculate your portfolio expected return (3 points).
B. Please calculate your portfolio Beta (3 points).
C. With an expected market return (not premium) of 7% and 1% risk free rate, are you pleased with your portfolio's expected performance and explain why through 1-2 sentences or bullets (4 points)?
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