Question: What is the systemic risk principle? What does the beta coefficient measure? How do you calculate portfolio beta? Provide an example showing the calculation for

What is the systemic risk principle? What does the beta coefficient measure? How do you calculate portfolio beta? Provide an example showing the calculation for the expected return, E(Rp), and beta, Bp, for a portfolio of two securities A and B. The amount invested in each security is $1000.

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