Question: QUESTION 2 (25 MARKS) Beta (a) Consider a portfolio comprise of three securities in the following proportion and with the indicated securities beta. Security Amount

QUESTION 2 (25 MARKS) Beta (a) Consider a portfolio comprise of

QUESTION 2 (25 MARKS) Beta (a) Consider a portfolio comprise of three securities in the following proportion and with the indicated securities beta. Security Amount invested Expected return RM1 million RM3 million 13.5% RM3 million A 1.0 12.0% B 1.5 0.8 9.0% Calculate the portfolio's : (0) Beta (4 marks) (ii) Expected return (4 marks) (II) Discuss your answer (1) and () (4 marks)

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