Question: Given the spreadsheet below, calculate the portfolio beta and the expected return on this two stock portfolio using the CAPM. a.If the weights were 50/50,
a. If the weights were 50/50, would this increase or decrease the portfolio return?
b. If the market's expected return had been 8% with the 60/40 weights, would this increase or decreased the portfolio return?
The Market's Expected Return
The Risk Free Rate
Beta for Bateman Industires…………………………………...9%
Beta for Advanced Solar Arrays 1.34……………………….2.50%
Weight for Bateman…………………………………………..0.98
Weigh for Solar Arrays
Portfolio Beta………………………………………………….60%
Expected Return on the Portfolio……………………………...40%
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Document Format (1 attachment)
650-B-A-I (7406).xlsx
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