2. Consider a portfolio comprised of three securities in the following proportions and with the indicated security beta. Security Amount Invested Beta Expected return $1.5 million 1.3 12.5% $1.0 million -0.1 896 $2.0 million 0.6 9.896 a. What is the portfolio's beta? b. What is the portfolio's expected return?
2. Consider a portfolio comprised of three securities in the following proportions and with the indicated security beta. Security Amount Invested Beta Expected return $1.5 million 1.3 12.5% $1.0 million -0.1 896 $2.0 million 0.6 9.896 a. What is the portfolio's beta? b. What is the portfolio's expected return?
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 13QTD
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Consider a portfolio comprised of three securities in the following proportions and with the indicated security beta.
a.) What is the portfolios beta?
b.) Wht is the portfolios expected return?
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