A portfolio is characterized by the following:
$\begin{array}{llll}
\text { Stock } &\$ \text { 's invested }& \text { Expected Return } & \text { Beta } \
\hline \mathrm{X} & \$ 2,000 & 15 \% & 2 \
\mathrm{Y} & \$ 8,000 & 12 \% & 1.6 \
\mathrm{Z} & \$ 2,000 & 8 \% & 1.2
\end{array}$
a. Calculate the portfolio's expected return.
b. Calculate the beta of the portfolio.
c. If the return on the market is 10% and the risk-free rate is 3%, what is the required return on the portfolio?

Question

A portfolio is characterized by the following:
 $\begin{array}{llll}
\text { Stock } &\$ \text { 's invested }& \text { Expected Return } & \text { Beta } \
\hline \mathrm{X} & \$ 2,000 & 15 \% & 2 \
\mathrm{Y} & \$ 8,000 & 12 \% & 1.6 \
\mathrm{Z} & \$ 2,000 & 8 \% & 1.2
\end{array}$
 a.	Calculate the portfolio's expected return.
b.	Calculate the beta of the portfolio.
c.	If the return on the market is 10% and the risk-free rate is 3%, what is the required return on the portfolio?

Quizplus · Accepted Answer

The Answer of A portfolio is characterized by the following:
 $\begin{array}{llll}
\text { Stock } &\$ \text { 's invested }& \text { Expected Return } & \text { Beta } \
\hline \mathrm{X} & \$ 2,000 & 15 \% & 2 \
\mathrm{Y} & \$ 8,000 & 12 \% & 1.6 \
\mathrm{Z} & \$ 2,000 & 8 \% & 1.2
\end{array}$
 a.	Calculate the portfolio's expected return.
b.	Calculate the beta of the portfolio.
c.	If the return on the market is 10% and the risk-free rate is 3%, what is the required return on the portfolio?

A Portfolio Is Characterized by the Following A Calculate the Portfolio's Expected Return