Using your answers to Problems 4a and 4b, estimate your portfolios expected return if the security market

Question:

Using your answers to Problems 4a and 4b, estimate your portfolio’s expected return if the security market line is estimated as E(R_i) = 5.2 + 8.4(????_i).

a. Estimate the beta of your fund holdings if you held equal proportions of each of the above funds.

b. Estimate the beta of your fund holdings if you had 20 percent of your investments in Weak Fund, 40 percent in Fido Fund, 15 percent in Vanwatch, and the remainder in Temper.

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...

Fantastic news! We've Found the answer you've been seeking!