Question: Calculating Portfolio Return and Portfolio Beta: In the table below, the total equity market value, beta, and equity security return is listed for four individual

Calculating Portfolio Return and Portfolio Beta: In the table below, the

Calculating Portfolio Return and Portfolio Beta: In the table below, the total equity market value, beta, and equity security return is listed for four individual equity securities. Assume you create a portfolio with these four securities. Calculate the return to the portfolio and the beta for the portfolio. Firm 1 Firm 2 Firm 3 Firm 4 Total firm equity market value (in millions) ...... Firm beta .. Firm security return $ 990 0.78 5.8% $3,675 1.06 6.5% $2,714 0.96 7.7% $ 581 1.47 8.3%

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