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Based on this portfolio what is the portfolios beta? Portfolio standard deviation? And portfolios expected return?...

Based on this portfolio what is the portfolios beta? Portfolio standard deviation? And portfolios expected return?

Beta Expected Rate of Return (CAPM) Portfolio Weight
SPY 1 9.00% 0.2
LQD -0.02 0.59% 0.05
HYG 0.38 3.89% 0.15
IBM 0.86 7.85% 0.1
KO 0.66 6.20% 0.2
BIG 1.04 9.33% 0.1
NFLX 1.57 13.70% 0.2
What is the Portfolio Beta? And formula to calculate it?
What is the Portfolio Standard Deviation and formula to find it?  
Portfolio Expected Return? And formula to calculate it?
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Answer #1
  1. Portfolio Beta formula= Beta* Portfolio weight

Beta

Expected Rate of Return (CAPM)

Portfolio Weight

Portfolio Beta (Beta*Portfolio weight)

SPY

1

9.00%

0.2

0.2

LQD

-0.02

0.59%

0.05

-0.001

HYG

0.38

3.89%

0.15

0.057

IBM

0.86

7.85%

0.1

0.086

KO

0.66

6.20%

0.2

0.132

BIG

1.04

9.33%

0.1

0.104

NFLX

1.57

13.70%

0.2

0.314

Portfolio Beta

0.892

2)

Portfolio Standard Deviation formula=

Beta

Expected Rate of Return (CAPM)

Portfolio Weight

Mean x̄= CAPM*Portfolio wieght

x-x̄

(x-x̄)^2

SPY

1

9

0.2

1.8

0.889

0.790321

LQD

-0.02

0.59

0.05

0.0295

-7.521

56.565441

HYG

0.38

3.89

0.15

0.5835

-4.221

17.816841

IBM

0.86

7.85

0.1

0.785

-0.261

0.068121

KO

0.66

6.2

0.2

1.24

-1.911

3.651921

BIG

1.04

9.33

0.1

0.933

1.219

1.485961

NFLX

1.57

13.7

0.2

2.74

5.589

31.236921

Mean

8.111

sum of (x-x̄)^2

111.615527

Square root of [(x-x̄)^2/n] = Square root of(111.615527/7)

                                                        = Square root of 15.94507529

                                                        = 3.99

                                                        =So Standard deviation= 4

3)

Portfolio expected return formula= CAPM * weight

Expected Rate of Return (CAPM)

Portfolio Weight

Mean x̄= CAPM*Portfolio wieght

9

0.2

1.8

0.59

0.05

0.0295

3.89

0.15

0.5835

7.85

0.1

0.785

6.2

0.2

1.24

9.33

0.1

0.933

13.7

0.2

2.74

Portfolio return ========================                   =8.111%
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