Companyaaa- return650 shares200 price54 companyaxe-


Company:AAA- Return6.50%, Shares200, Price54 Company:Axe- Retrun7.8% Shares100 Price120 Company:BR Co.- Return11% Shares400, Price30 Company: Basil- Return12.7%, Shares500, Price450 Company: Temple- Return20.5%, Shares300, Price100 If the risk premium on the market is 5.5% and the risk-free rate is 2.00% What is the return on your portfolio? What is the Beta of the portfolio? If you decide to sell your Temple Stock and replace it with a stock (trading at $50 per share; using the entire proceeds to buy the new shares) that has a Beta of 1.20, what would the beta of your portfolio be and what is its new expected return on your portfolio?

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Financial Management: Companyaaa- return650 shares200 price54 companyaxe-
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