SUBJECT: financial and management application I need the answer quickly QUESTION: Realizing the benefits of diversification you have invested in the following securities: United Chubb Chase Expected return Standard deviation of return 12% 14% 9% 3% 5% 3% Beta 1.65 1.2 0.89 Amount invested in each $50,000 1. Compute the expected rate of rèturn on the portfolio, and the beta of the security $125,000 $75,000 portfolio

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
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SUBJECT: financia and management application
I need the answer quickly
QUESTION:
Realizing the benefits of diversification you have invested in the following securities:
United
Chubb
Chase
Expected return
Standard deviation of return
12%
14%
9%
3%
5%
3%
Beta
1.65
1.2
0.89
Amount invested in each security
1. Compute the expected rate of rèturn on the portfolio, and the beta of the
portfolio
$50,000
$125,000
$75,000
Transcribed Image Text:SUBJECT: financia and management application I need the answer quickly QUESTION: Realizing the benefits of diversification you have invested in the following securities: United Chubb Chase Expected return Standard deviation of return 12% 14% 9% 3% 5% 3% Beta 1.65 1.2 0.89 Amount invested in each security 1. Compute the expected rate of rèturn on the portfolio, and the beta of the portfolio $50,000 $125,000 $75,000
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