Question: 5. The portfolio managed by Arfa has three types of securities. The current investment values for these securities are provided below with their betas: Beta

5. The portfolio managed by Arfa has three types of securities. The current investment values for these securities are provided below with their betas: Beta 1.70 Share Smart Co. Karamch Co Ligo Co. No. of shares 20,000 66,000 45,000 Share price OMR 1.50 OMR 0.70 OMR 1.90 1.00 0.70 a. What is the beta on this portfolio? Which share will be considered to be aggressive? b. If the risk-free rate of return is 4.5 per cent and the return on market portfolio has been 8.5 per cent what is the expected return on this portfolio over the next year

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