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What will be the portfolio expected return

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Reference no: EM132982482

The following information relates to the amount of investment and the beta for six company stocks:

Stock                 Amount invested                Beta

A                        $ 9,000                        1.40

B                         10,000                        0.80

C                         20,000                        0.60

D                           1,000                       1.80

E                           5,000                       1.05

F                            5,000                        0.90

Required:

Problem a. Determine the Beta of the portfolio comprising these six stocks

Problem b. If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be the portfolio's expected return?

Reference no: EM132982482

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