Question: a. What does beta measure, and what does a beta of 0.5,1, and 1.5 mean? (2.5 Marks) canvere b. What factors determine the level of

a. What does beta measure, and what does a beta of 0.5,1, and 1.5 mean? (2.5 Marks) canvere b. What factors determine the level of a beta which a company may have? (2.5 Marks) c. Samuel Stalobela conducts business in an economy whose market return is 20% and Risk free rate is 12%. He is considering creating a portfolio of investments and the securities under consideration have the following information: Required: i. Calculate the beta for the portfolio(4 Marks) ii. Calculate the portfolio expected return( 4 Marks) iii. Calculate Required Rate of Retum for Samuel (2 Marks) =14.9%

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