Question: How do you calculate ebeta, expected excess returns, expected return of a portfolio on the given information Your friend builds three portfolios and finds their

How do you calculate ebeta, expected excess returns, expected return of a portfolio on the given information

Your friend builds three portfolios and finds their betas as follows: Portfolio A Portfolio B Portfolio C Expected Excess Return 5% 100/0 Beta 0.4 1.0 12 Question 1: (the easy one) What is the beta and expected excess return of a portfolio that invests $100 in Portfolio A, $100 Portfolio B, and $200 in Portfolio C? (60 points)

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