Question: Pleese I need all that. Beta Calculation Exercise: 1. Suppose a portfolio is made up of three stocks: A, B, and C. The betas of
Beta Calculation Exercise: 1. Suppose a portfolio is made up of three stocks: A, B, and C. The betas of the stocks of these companies are 0.8, 1.2, and 1.8, respectively. Calculate the beta of the portfolio if it is made up of 10% of A's shares, 40% of B's shares, and 50% of C's shares. Calculation Executions of Required Rate of Return according to the CAPM. 2. Company X has a beta of 1.45. the expected risk-free rate is 2.5% and the expected premium in the market is 10%. Using the CAPM, calculate the expected return on X's stock. 3. Consider investment instruments M and N with the following estimates: E (RM) = 5% SM = 10% IF E (RN) = 15% sN = 25%
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