Question: ( Portfolio beta and CAPM ) You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings:
Portfolio beta and CAPMYou are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings:LOADING
aWhat is the beta on each portfolio?
bWhich portfolio is riskier?
cIf the riskfree rate of interest were percent and the market risk premium were percent what rate of return would you expect to earn from each of the portfolios?
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Part
aThe beta on the first portfolio is
enter your response here. Round to three decimal places.
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