A. Given the following information:
Stock Amount invested Beta Return
X $42,000 .40 10%
Y $10,000 1.30 25%
Z $8,000 .80 5%
M $3,000 1.00 50%
Calculate the expected return of the portfolio
Calculate the risk of the portfolio
Which of the following stock would you expect to give a return higher than the market? Explain your answer.