Look back at Table 7.5 on page 174.
a. What is the beta of a portfolio that has 40% invested in Disney and 60% in Exxon Mobil?
b. Would you invest in this portfolio if you had no superior information about the prospects for these stocks? Devise an alternative portfolio with the same expected return and less risk.
c. Now repeat parts (a) and (b) with a portfolio that has 40% invested in Amazon and 60% in Dell.
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