You invest $600 in a security with a beta of 1.2 and $400 in another security with a beta of 0.90. The beta of the resulting portfolio is a. 1.04b. 1c. 0.98d. 1.70

Edgar invested $600 in Stock F and $400 in Stock G. Stock F's beta is 1.2 and Stock G's beta is0.90. What is the beta of Edgar's portfolio?

Suppose there are 5 stocks with the following betas:βA= 0.5, βB= 1.2, βC= 0.6, βD= 1, βE= 0.8A portfolio manager decides to invest £100,000 in a portfolio comprising these 5 stocks as follows:A = £20,000, B = £10,000, C = £25,000, D = £15,000, E = £30,000What is the beta of the portfolio?

PORTFOLIO BETA An individual has $20,000 invested in a stock with a beta of 0.6 and another $75,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio’s beta?

Consider the following table, which gives a security analyst’s expected return on two stocks intwo particular scenarios for the rate of return on the market:Market Return Aggressive Stock Defensive Stock5% −2% 6%25 38 12a. What are the betas of the two stocks?b. What is the expected rate of return on each stock if the two scenarios for the market returnare equally likely?c. If the T-bill rate is 6% and the market return is equally likely to be 5% or 25%, draw the SMLfor this economy.d. Plot the two securities on the SML graph. What are the alphas of each?e. What hurdle rate should be used by the management of the aggressive firm for a project withthe risk characteristics of the defensive firm’s stock?

Single choice7)Assume that the risk-free rate is 3% and the market risk premium is 5%, therefore a security with a beta of 1.5 should have an expected return closest to:0.1050.0850.06