Stock investment beta expected return

Reference no: EM1354945

For questions 67-68, consider the following information for the BU Scholarship Investment Fund. The total investment in the fund is $1 million.
STOCK INVESTMENT BETA EXPECTED RETURN
A $200,000 1.5 25%
B $300,000 -0.5 4%
C $500,000 1.25 15%

67 Based on the allocation of dollars among the three stocks and their expected return, calculate the expected rate of return for the BU Scholarship Investment Fund.
a. 14.67%
b. 18.8
c. 13.7
d. 44.0
e. Insufficient information to compute

68 Based on the allocation of dollars among the three stocks and their respective betas, calculate the beta for the BU Scholarship Investment Fund.
a. 3.25
b. 1.08
c. 2.25
d. 0.75
e. 0.775
f. Insufficient information to compute. (if using bubble sheet, just write "f" in to select f)

Reference no: EM1354945

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