You are given the following information for an investment portfolio. Stock Value...
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Accounting
You are given the following information for an investment portfolio.
| Stock | Value | Beta |
| A | $15,000 | 0.2 |
| B | 35,000 | 0.9 |
| C | 50,000 | 2.8 |
| D | 10,000 | 5 |
| Total: |
- Calculate the beta of the portfolio? What can you say about the riskiness of your investment? (1 pt)
- Suppose Stock C becomes a risk-free stock. Recalculate the portfolios beta. What can you say about the riskiness of your investment? (1 pt)
- You want to end up with an investment mix that has beta equal to the market beta. What changes in your investment would you consider? (1 pt)
- A good investment portfolio is trying to minimize systematic risk. Yes or No? Explain. (0.5 pt)
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