Question: Beta Calculation. Security Correlation Co-Efficient (with m) Standard Deviation XRO 0.7 0.40 TWE 0.4 0.28 E(RM) = 0.12 Rf = 0.05 2(RM) = 0.01 a)

Beta Calculation.

Security

Correlation Co-Efficient (with m)

Standard Deviation

XRO

0.7

0.40

TWE

0.4

0.28

E(RM) = 0.12

Rf = 0.05

2(RM) = 0.01

a) Using the information above, calculate beta for:

i. Security XRO

ii. Security TWE

iii. A portfolio with 60% XRO and 40% TWE

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