You've assembled the following portfolio: Stock Expected return Beta Portfolio weight 1 0.128 1.8 0.2 2 0.086 1.1 0.6 3 0.062 0.7 0.2 What is the beta of the portfolio? What is the expected return of your portfolio?

You've assembled the following portfolio: Stock Expected return Beta Portfolio weight 1 0.128 1.8 0.2 2 0.086 1.1 0.6 3 0.062 0.7 0.2 What is the beta of the portfolio? What is the expected return of your portfolio?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 15MC

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Question

You've assembled the following portfolio:

Stock	Expected return	Beta	Portfolio weight
1	0.128	1.8	0.2
2	0.086	1.1	0.6
3	0.062	0.7	0.2

What is the beta of the portfolio?

What is the expected return of your portfolio?

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