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You inherited a huge sum of money and would like to choose a portfolio to invest in. Portfolio P is made up of 36

You inherited a huge sum of money and would like to choose a portfolio to invest in. Portfolio P is made up of 36 % of A and 64% of B; Portfolio Q is made up of 60% of C and 40% of D; and Portfolio R is made up of 50% of G and 50% of H. The beta and expected return of the stocks in question are in the table below. Perform relevant calculations to show which portfolio you would choose if you would want to maximise expected return. (8 marks) Share: Beta Share A 1.30 Share B 1.96 Share C 0.46 Share D 1.23 Share G 1.82 Share H 1.14 Expected Return 17% 15% 20% 12% 28% 9%

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