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What is the beta of the portfolio

Problem: A Sports sales company, the Eisenhower Corporation in 1956, invested in the stock market the following:

__________ Portfolio Betas________
Security $ Invested Expected Return Beta
Kindred Healthcare: $1,000 8% .80
Ford: 2,000 12 .95
GMC: 3,000 15 1.10
Comerica: 4,000 18 1.40

Q1. What is the Beta of this portfolio?

Q2. Does this portfolio have more or less systematic risk than an average asset?

(Hint: Determine the portfolio weights.)

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Finance Basics: What is the beta of the portfolio

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the beta of the portfolio

Reference No:- TGS01451993

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: What is the beta of the portfolio

Reference No:- TGS01451993

Recent Questions Asked Finance Basics

Q : Impact stakeholder relationships an organization

Q : Tennessee gasoline prices

Q : Current price per share and the price per share

Q : Identify key metrics and ratios of the company

Q : What is the beta of the portfolio

Q : Economic functions financial intermediaries

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