Question: Company Expected return % Standard deviation (%) Beta Investment ($) ABC 21 34 1.75 7,500 XYZ 12 20 1.05 20,000 MNO 9 12 .085 12,500

Company

Expected return %

Standard deviation (%)

Beta

Investment ($)

ABC

21

34

1.75

7,500

XYZ

12

20

1.05

20,000

MNO

9

12

.085

12,500

Correlation coefficients

ABC

XYZ

MNO

ABC

1.0

0.5

0.2

XYZ

1.0

0.8

MNO

1.0

Using the information from the preceding tables, calculate the expected return and beta of this three-stock portfolio.

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