8. Problem (2 parts) You want to create a portfolio to diversify risk in your investments. The weights and betas of the four stocks are: A: weight 30%, beta.99 C: weight 14%, beta 1.05 Es weight 40%, beta 1.45 G: weight 16%, beta 1.90 What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 12.34.) Portfolio beta What formula did you use to calculate the portfolio beta? (Write the number of the formula you used from your formula sheet) Formula number CFFA OCF-NCS - ANWC OCF = EBIT+D-T OCF = Profit (1-1)+ (D)(T) Formula Sheet NSCF=SV - (SV-BV)(T) BV Dstraight-line Years ANPV 6 Sensitivity_Variable- A variable Sensitivity. Variable AOCE Avariable 10 8 NPV = CF (1+R) O CF (1 + IRR) IRR = Rate Los (NPV Rateig Rate.com (NPV-NPV to 11 Po- Dividend Yield 13 12 D1 Po" (R-0) R 17 Price/share Price/share P.5- Sales 15 DPR 19 EPS Earnings Revenue -Cost) shares outstanding 18 Sales 16 PE 5/5 shares outstanding 20 EPS- OPRE Price Benchmark PE ratio x EPS 21 Price - Benchmark P-S ratio x Sales/Share 22 25 27 23 - - PMI PVADEPMT (1+1) PV 24 V-PMT 26 PVADEPMT [(4-70-4a+ PMT= 28 29 Current Yield Annual Coupon Price (PO) 30 Phon YTM YTM 31 (1+R) = (1+r)(1+h) (t.YTM 32 FV-PV(1+r) PV- FV (1+r)' in() in (1) 33 34 35