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You're analyzing a portfolio of stocks and want to determine both the expected rate of return and the expected Beta. Given the following, please provide
You're analyzing a portfolio of stocks and want to determine both the expected rate of return and the expected Beta. Given the following, please provide them (show your work for full credit), AND please tell me what you could do to LOWER your risk in this portfolio.
\begin{tabular}{|c|ccc|} \hline Stock & Weight & Exp. Return & Beta \\ \hline Goog & 0.45 & 15% & 1.35 \\ XOM & 0.25 & 12% & 1.25 \\ FB & 0.15 & 10% & 1.75 \\ LUV & 0.15 & 8% & 1 \\ \hline \end{tabular}Step by Step Solution
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