Question: Look back at Table. a. What is the beta of a portfolio that has 40% invested in Disney and 60% in Exxon Mobil? b. Would

Look back at Table.

a. What is the beta of a portfolio that has 40% invested in Disney and 60% in Exxon Mobil?
b. Would you invest in this portfolio if you had no superior information about the prospects for these stocks? Devise an alternative portfolio with the same expected return and less risk.
c. Now repeat parts (a) and (b) with a portfolio that has 40% invested in Amazon and 60% inDell.

Stock Amazon Ford Dell Starbucks Boeing Beta (B) 2.16 1.75 1.41 1.16 1.14 Beta (B) 96 63 .55 Stock Disney Newrnont Exxon Mobil Johnson& Johnson50 Campbell Soup .30

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a The Beta of the first portfolio is 0714 and offers an average return of 59 Beta Expected Return ... View full answer

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