What is the security expected return

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Problem 11-1

Based on the following probability distribution, what is the security's expected return?

State                Probability                      r___      

1                            0.2                         -5.0%

2                            0.3                         10.0

3                            0.5                         30.0

Problem 11-3

Susan's investment portfolio currently contains three stocks that have a total value equal to $100,000.  The beta of this portfolio is 1.5.  Susan is considering investing an additional $50,000 in a stock that has beta equal to 3.  After she adds this stock, what will be the portfolio's new beta?

Reference no: EM133233393

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