Compute the portfolio betas for the following cases what is


Compute the portfolio betas for the following cases.

(1) Suppose that you put 30% of your money in a stock with a beta of 1.20, 20% of your money in a stock with a beta of 0.70, 20% of your money in a stock with the same beta with the market portfolio, and the rest in T-bills. What is the portfolio beta?

(2) What must be the beta of a portfolio with E(Rp) = 16%, if Rf = 1% and E(Rm) = 11%?

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Financial Management: Compute the portfolio betas for the following cases what is
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