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info from question 1:
expected rate of return for portfolio: 0.04%
standard deviation of portfolio return: 15.63%

info from question 2:
beta: 2.14
expected rate of return on stock: 7.83%

er1 ABCD Question 5 (5 Marks) 2 Refer to Questions 1 and 2. Richard has just received an unexpected 3 bonus at work worth $15
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Answer #1

Since Richard is investing all his bonus in J Corp Stock, so portfolio will consist of only J Corp share.

Beta of portfolio is 2.14 ( as per information provided by you.)

Richard portfolio is aggressive since the beta of portfolio is 2.14 which is more then market beta 1.

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