You hold a portfolio with the following securities:

You hold a portfolio with the following securities:
SecurityPercent of PortfolioBetaReturn
X Corporation20%1.3514%
Y Corporation35%.9510%
Z Corporation45%.758%
Compute the expected return and beta for the portfolio.
A.   9.9%, .94 B.   10.67%, 1.02
C.   9.9%, 1.02 D.   34.4%, .94

 

Solution

You hold a portfolio with the following securities:

You hold a portfolio with the following securities:
SecurityPercent of PortfolioBetaReturn
X Corporation20%1.3514%
Y Corporation35%.9510%
Z Corporation45%.758%

Solution

You hold a portfolio with the following securities:

You hold a portfolio with the following securities:
Security Percent of Portfolio Beta Return
X Corporation 20% 1.35 14%
Y Corporation 35% .95 10%
Z Corporation 45% .75 8%
Compute the expected return and beta for the portfolio.
A.  34.4%, .94
B.  9.9%, 1.02
C.  10.67%, 1.02
D.  9.9%, .94

 

Solution