Question
You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5 stocks are as follows: .8,
You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5 stocks are as follows: .8, -1.3, .95, 1.2 and 1.4. The risk-free return is 3% and the market return is 7%.
1.Compute the beta of the portfolio.
2.Compute the required return of the portfolio.
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Small Business Management Launching and Growing New Ventures
Authors: Justin Longenecker, Leo Donlevy, Terri Champion, William Petty, Leslie Palich, Frank Hoy
6th Canadian edition
176532218, 978-0176532215
