Identify two investment alternatives that can be combined in a portfolio. Assume a 5050 investment allocation in each investment alternative   b) Compute the expected return of the portfolio thus formed  c) Compute the portfolio’s beta. Is the portfolio aggressive or defensive?

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Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.