Please show all work and formula:
Please use the information on the table below to answer this
question.
Security
Actual
Return
Beta
A
12%
1.2
B
10%
1.0
C
14%
1.4
Assume the risk-free interest rate is 1% and the market risk
premium is 5.5%. An investor would like to invest $40,000 in
Security A, $25,000 in security B and $50,000 in Security C. Find
the portfolio’s expected return.
Find the portfolio’s actual return.
Based on your answers to a...