2. You are going to invest $20,000 in a portfolio consisting of assets X, Y, and...

 

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2. You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: Annual Asset Return Probability Beta Proportion X 10% 0.50 1.2 0.333 Y 8% 0.25 1.6 0.333 Z 16% 0.25 2.0 0.333 Given the information in Table, find a) b) c) expected annual return of this portfolio beta of portfolio Assuming the risk-free rate of 6 percent and the market return of 12 percent, compute the required rate of return of this portfolio. 2. You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: Annual Asset Return Probability Beta Proportion X 10% 0.50 1.2 0.333 Y 8% 0.25 1.6 0.333 Z 16% 0.25 2.0 0.333 Given the information in Table, find a) b) c) expected annual return of this portfolio beta of portfolio Assuming the risk-free rate of 6 percent and the market return of 12 percent, compute the required rate of return of this portfolio.

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