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

The expected returns for securities A, B and C are listed below: Security A Security B Security C Expected returns 12% 18% 9% Assume a risk-free rate of 3% and market premium of 6%. 2.1. What are the betas for the three securities? [4] 2.2. For a portfolio consisting of 20% of Security A, 45% of Security B, and 35% of Security C, determine the portfolios expected return and beta. [6]

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