Explain the Two ways an investor can obtain a return in the equity market. 

1. Calculate the portfolio beta if an investor holds the following shares:

Westpac Bank	$15,000	Beta 1.35
Domino's Pizza	$9,000	Beta 1.5
Vodafone	$12,500	Beta 0.95

 

If the investor added to the portfolio with a purchase of $10,000 worth of shares in Coles with a beta of 1.8, what impact would that purchase have on the risk structure of the portfolio? (Hint: Calculate the new portfolio beta and explain your answer.) 

Answer rating: 100% (QA)

Answer A Two Ways an investor can obtain return in Equity market is 1 Dividend Income 2 Profit ... View the full answer