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You have a portfolio of the following four shares: Share Beta Investment A 0.80 100,000 B 1.25 100,000 C 1.00 075,000 D 0.60 125,000 What

You have a portfolio of the following four shares:

Share

Beta

Investment

A

0.80

100,000

B

1.25

100,000

C

1.00

075,000

D

0.60

125,000

What is the expected rate of return on your portfolio if the risk-free rate of return is 9 per cent and the expected market rate of return is 16 per cent?

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