Cmpute the beta of portfolio

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Reference no: EM1362314

Part A: The market portfolio is assumed to be composed of two securities, Investment X and Y as shown below. Determine based on the information given the average return, the standard deviation and coefficient of variation. Which is the better investment?
Year Return X Return Y
1997 16.5% 17.5%
1998 14.2% 13.2%
1999 13.5% 14.5%
2000 16.1% 15.1%
2001 12.2% 13.2%
2002 11.5% 10.5%

Part B: A portfolio consists of five securities with the following beta and proportions: What is the Beta of the portfolio?
Asset Beta Proportions
1 ...... 1.35 .....(.1)
2....... 1.12......(.2)
3....... 1.67......(.3)
4....... 1.04......(.2)
5....... 1.55......(.2)

 

Reference no: EM1362314

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