What is the beta of the portfolio

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Reference no: EM13810253

The Index Portfolio has invested in three stocks with the following beta and dollar amount of investment. The markets expected return is 13% and the risk free rate is 5%. What is the beta of the portfolio? What is the expected return of the portfolio? (13.23%)

Stock beta Amount Invested

Stock 1 1.2 $150,000

Stock 2 .23 $300,000

Stock 3 2.1 $200,000

Reference no: EM13810253

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