Suppose we have the following information: Securit Amount Invested Expected Return Beta Stock A RM1 ,OOO 8% 0.80 Stock B RM2,OOO 12% 0.95 Stock C RM3,OOO 15% 1.10 Stock D RM4,OOO 18% a) Compute the expected return on this portfolio. b) Calculate the beta of the portfolio. c) Does this portfolio have more or less systematic risk than an average asset? Explain
Suppose we have the following information: Securit Amount Invested Expected Return Beta Stock A RM1 ,OOO 8% 0.80 Stock B RM2,OOO 12% 0.95 Stock C RM3,OOO 15% 1.10 Stock D RM4,OOO 18% a) Compute the expected return on this portfolio. b) Calculate the beta of the portfolio. c) Does this portfolio have more or less systematic risk than an average asset? Explain
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 6P
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Suppose we have the following information:
Securit Amount Invested Expected Return Beta Stock
A RM1 ,OOO 8% 0.80
Stock B RM2,OOO 12% 0.95
Stock C RM3,OOO 15% 1.10
Stock D RM4,OOO 18%
a) Compute the expected return on this portfolio.
b) Calculate the beta of the portfolio.
c) Does this portfolio have more or less systematic risk than an average asset? Explain.
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