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How much risk does she have to take in order

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Question - Danny wants to set up a portfolio that has an expected return of 10%. The portfolio has two assets: (1) Dublin donuts with beta of 1.2 and returns of 14% and (2) Safeway with beta of .9 and returns of 8%.

a) How much (percentage) should she invest in these two companies in order to get 10% portfolio?

b) How much risk does she have to take in order to have a 10% expected returns? In other words, what is her portfolio beta?

Reference no: EM132779382

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