(Solution) - The following common stocks are available for investment -(2025 Original AI-Free Solution)
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The following common stocks are available for investment:
COMMON STOCK (Ticker Symbol) BETA
Nanyang Business Systems (NBS)??????. 1.40
Yunnan Garden Supply, Inc. (YUWHO)???? 0.80
Bird Nest Soups Company (SLURP) ?????. 0.60
Wacho.com! (WACHO) ??????????. 1.80
Park City Cola Company (BURP)??????? 1.05
Oldies Records, Ltd. (SHABOOM)??????. 0.90
a. If you invest 20 percent of your funds in each of the first four securities, and 10 percent in each of the last two what is the beta of you.' portfolio?
b. If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be the portfolio's expected return?