Question: I just need the formula for the blank cells please! Problem 8-23 You are putting together a portfolio made up of four different stocks. However,

I just need the formula for the blank cells please!

I just need the formula for the blank cells please! Problem 8-23

You are putting together a portfolio made up of four different stocks.

Problem 8-23 You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings Given Data: Portfolio Weightings Beta 2.5 1.0 0.5 1.5 Asset First Portfolio 10% 10% 40% 40% Second Portfolio 40% 40% 10% 10% 12 13 a. What is the beta on each portfolio? 15 First Portfolio Second Portfolio 16 Portfolio beta b. Which portfolio is riskier? 18 19 20 21 According to the portfolios' betas, is riskier c. If the risk-free rate of interest were 4 percent and the market risk premium were 5 percent, what rate of return would you expect to ean from each of the portfolios? 23 24 25 26 27 28 29 Risk-free rate Risk premium First Portfolio Second Portfolio Expected rate of return of the portfolio

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