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What is the beta of the portfolio

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Reference no: EM133061588

A portfolio, with a current market value of $35,000, is constructed consisting of only two stocks, Aberdeen and Jasper. According to the CAPM, the expected risk premium (expected return less the risk-free rate) of Aberdeen is 12.06% and the expected risk premium of Jasper is 5.84%. If the beta of Aberdeen is 1.33 and the portfolio consists of $25,900 invested in Aberdeen,

a. What is the beta of the portfolio?

b. What is the expected risk premium of the portfolio.?

Reference no: EM133061588

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