Question: 1.- Create a table that includes the name of the stocks in your stocktrak portfolio and beta for each one. (Beta is available on the

1.- Create a table that includes the name of the stocks in your stocktrak portfolio and beta for each one. (Beta is available on the Morningstar or Net Advantage stock reports).

2.- What is beta for your portfolio? (Find it on stocktrak). Using beta for your portfolio, explain in one sentence how much risk you are taking compared to the market.

3.- Find the sharpe ratio of your portfolio on stocktrak.Explain in one sentence what the number means.

4.- Use the CAPM formula to calculate the expected return of your portolio. Assume a market risk premium of 3% and a risk free rate of 0.44%. This is your portfolio's annual expected return.

5.- Compare your current portfolio return (on stocktrack) to the expected return from (4). Your stocktrack portfolio return is the return that you have earned in one month and a half. Are you being compensated for the risk that you are taking?

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