Weights of the vehicles to emphasize low-risk performers


Problem:

Locate the beta for each security. Use .3 beta for bonds and 0 for money market instruments

Securities are:

  • Cisco Systems, Inc.
  • General Electric Company
  • Motorola, Inc.
  • Microsoft
  • Dell

Also

i. Perform another risk assessment, using these weightings.
ii. Change the weights of the vehicles to emphasize low-risk performers.
iii. Perform another risk assessment using these weightings.

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Finance Basics: Weights of the vehicles to emphasize low-risk performers
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