The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock Proportion in the portfolio Beta Gazprom 0.25 1.4 Shell 0.3 1.6 Exxon Mobil 0.3 1.5 CNOOC 0.15 1.8 a) Determine the portfolio beta b) If the risk free rate is 9% and required rate is 18%, what is the required return on the portfolio? c) If you sell all the investment in Shell and purchase an equivalent amount in CNOOC, what will be the beta of restructured portfolio?||

The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock Proportion in the portfolio Beta Gazprom 0.25 1.4 Shell 0.3 1.6 Exxon Mobil 0.3 1.5 CNOOC 0.15 1.8 a) Determine the portfolio beta b) If the risk free rate is 9% and required rate is 18%, what is the required return on the portfolio? c) If you sell all the investment in Shell and purchase an equivalent amount in CNOOC, what will be the beta of restructured portfolio?||

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 13QTD

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