1. You are invested 38.40% in growth stocks with a beta of 1.974, 37.80% in value stocks with a beta of 0.955, and 23.80% in the market portfolio.
What is the beta of your portfolio?
2. The market risk premium for next period is 9.30% and the risk-free rate is 2.70%. Stock Z has a beta of 0.973 and an expected return of 13.10%. What is the: "
a) Market's reward-to-risk ratio?
b) Stock Z's reward-to-risk ratio