Mr Gill has inherited the following portfolio: a. What is the beta on this portfolio assuming that

Question:

Mr Gill has inherited the following portfolio:

a. What is the beta on this portfolio assuming that CAPM theory works?

b. If the risk-free rate of return is 6.5 per cent and the risk premium on shares over Treasury bills has been 5 per cent what is the expected return on this portfolio over the next year?

Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...