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Consider a portfolio consisting of the following three stocks: The volatility of the market portfolio...

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Finance

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Consider a portfolio consisting of the following three stocks: The volatility of the market portfolio is 10% and it has an expected return of 8% The nisk-free rate is 3% a. Compute the beta and expected return of each stock. b. Using your answer from pant (a), calculate the expected return of the portfolio c. What is the beta of the portfolio? d. Using your answer from part (c), calculate the expected return of the portfolio and verify that it matches your answer to part (b) a. Compute the bota and expected retum of each stock (Round to two decimal places N Portfolio Weight Volatility Correlation Beta (A) (D) (C) HEC Corp 0.27 12% 0.46 Green Widget 0.38 28% 0.61 Alive And Well 0.35 11% 0.59 Expected Return E % (Click on the following icon in order to copy its contents into a spreadsheet.) HEC Corp Green Widget Alive And Well Portfolio Weight 0.27 0.38 0.35 Volatility 12% 28% 11% Correlation with the Market Portfolio 0.46 0.61 0.59

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