Question

Security Espected Return Standard Deviation Beta 0.10 0.24 0.08 0.20 0.80 123 What is the expected return of a portfolio consisting of 60% Securify #1 and 40% Security #2? Select one: O a. 8.20% O b.9.20% O c. 10.20% O d. 11.20% e. None of the above O What is the Beta of a portfolio consisting of 60% Security #1 and 40% Security #2? Select one: a 0.8700 O b. 0.9700 c. 1.0700 d. 1.1700

Answer 1

Answer Portfolio Security #1 werghtage - 60% – – 6 security #2 weightage 0 Security #1 return . 10= 10%. Security #2 return = .08 = 8 % (912) Expected return on portfolio = Wint W2 12 = (5x10) + (4 x 8) = 6 + 3.2 Expected return = 9.2 % ! Answers Weightage of security #1 (Wo) = .6 Weightage of security #2 (Wa)=64 Beta of security #1 (B) = 1025 Beta of security #2 (B2) = .80 Beter of portfolio = Wifi + W₂ B2 =(•6x1.25) +(84x580) = .75+.32 Beta of funtfolio = 1:07] a for positive reviewe Thank you, Request