Question: The expected returns for securities A, B and C are listed below: Security A Security B Security C Expected returns 12% 18% 9% Assuming the

The expected returns for securities A, B and C are listed below: Security A Security B Security C Expected returns 12% 18% 9% Assuming the risk-free rate of 3% and market premium of 6%:

4.1. What are the betas for the three securities?

4.2. For a portfolio consisting of 20% of security A, 45% of security B, and 35%, determine the portfolios expected return and beta.

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