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QUESTION 16 An investor currently holds the following portfolio: 8,000 shares of Stock A 15,000 shares of Stock B 25,000 shar
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Answer #1

Stock Inv. beta 1.31 $ $ $ $ 16,000.00 48,000.00 96,000.00 160,000.00 Weight 0.10 0.30 0.60 W*beta 0.13 1.81 0.54 2.2 1.32 1.

=2%+1.99*7%

=15.93%

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