ALPHA SHARES Annual investment Return Probability occurrence Annual investment Return Probability occurrence 10% 20% 17% 12% 24% 18% BETA SHARES . 0.4 0.5 0.1 0.3 0.6 0.1 1. Given that weight of Alpha is 60% and weight of Beta is 40%. Find the following • Possible return of portfolio Expected return of the portfolio

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
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ALPHA SHARES
BETA SHARES
Annual investment Return Probability occurrence Annual investment Return Probability occurrence
10%
12%
24%
18%
0.4
0.5
0.1
20%
17%
0.3
0.6
0.1
1. Given that weight of Alpha is 60% and weight of Beta is 40%. Find the following
• Possible return of portfolio
• Expected return of the portfolio
• Expected return of the shares (individual)
• Risk of the shares (individual)
• Risk of the portfolio
b Explain what is risk management in international market
Transcribed Image Text:ALPHA SHARES BETA SHARES Annual investment Return Probability occurrence Annual investment Return Probability occurrence 10% 12% 24% 18% 0.4 0.5 0.1 20% 17% 0.3 0.6 0.1 1. Given that weight of Alpha is 60% and weight of Beta is 40%. Find the following • Possible return of portfolio • Expected return of the portfolio • Expected return of the shares (individual) • Risk of the shares (individual) • Risk of the portfolio b Explain what is risk management in international market
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