What is the beta of the portfolio

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1. Consider U.S. and Canadian rates as an illustration. Suppose that the spot rate for the Canadian dollar is presently 1 USD = 1.0650 CAD (ignoring bid-ask spreads for the moment). What is the one-year forward rate if US risk free rate is 3.5% while Canada's risk free rate is 3%.

2. A portfolio comprises Coke (beta of 1.4) and Wal-Mart (beta of 0.8). The amount invested in Coke is $20,000 and in Wal-Mart is $30,000. What is the beta of the portfolio?

Reference no: EM132413513

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