Calculate the beta of the portfolio of stocks

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Reference no: EM132041666

Question: Please answer the following questions related to the Portfolio introduced in as part of this Portfolio Beta problem (assume an equal investment in each stock - perhaps $1000 investment for each).

1) Calculate the beta of this portfolio of stocks using the current betas for each stock as given on Yahoo Finance or CNBC. . What does this portfolio beta measure?

2) What should the owner of this portfolio expect in regards to unsystematic risk?

3) What should the owner of this portfolio expect in regards to systematic risk?

4) Based on your calculation for the Portfolio Beta for this Portfolio, what should the owner expect in the way of return compared to the return of the S&P 500?

5) Based on the composition of the Portfolio, what can you say about the owner's risk tolerance?

Reference no: EM132041666

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