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April 16, 2014

Homework Help: Finance

Posted by Anonymous on Monday, November 28, 2011 at 8:26pm.

A portfolio consists of three stocks. The weight, expected rate of return and systematic risk for each stock are provided in the following table.

Stock Investments Expected return
A $7,500 20%
B $10,000 15%
C $2,500 10%

Beta
1.5
1
0.9

a) Calculate the weights invested in stocks A, B and C, respectively.








b) Calculate expected return on the portfolio.








c) Calculate the systematic risk of the portfolio, i,e. the portfolio beta

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