Anna holds a portfolio comprising the following 3 stocks: X, Y and Z. Investment Amount $'000 Beta Expected Return Security X 2,000 1.3 Security Y 1,000 1.0 10% Security Z 500 0 2% (a) Determine the expected return of security X. (b) Calculate the return of Anna's portfolio.
Anna holds a portfolio comprising the following 3 stocks: X, Y and Z. Investment Amount $'000 Beta Expected Return Security X 2,000 1.3 Security Y 1,000 1.0 10% Security Z 500 0 2% (a) Determine the expected return of security X. (b) Calculate the return of Anna's portfolio.
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 25P
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Anna holds a portfolio comprising the following 3 stocks: X, Y and Z.
Investment | Amount $'000 | Beta | Expected Return |
Security X | 2,000 | 1.3 | |
Security Y | 1,000 | 1.0 | 10% |
Security Z | 500 | 0 | 2% |
(a) Determine the expected return of security X.
(b) Calculate the return of Anna's portfolio.
(c) Calculate the beta of Anna's portfolio.
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