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Beta & Investment

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Part A
The market portfolio is assumed to be composed of two securities, Investment X and Y as shown below. Determine based on the information given the Average return, Standard Deviation and Coefficient of Variation. Which is the better investment?
Year Return X Return Y
1997 16.5% 17.5%
1998 14.2% 13.2%
1999 13.5% 14.5%

2000 16.1% 15.1%
2001 12.2% 13.2%
2002 11.5% 10.5%

Part B
A portfolio consists of five securities with following Beta and Proportions:
What is the Beta of the portfolio?
Asset Beta Proportions
1 1.35 .1
2 1.12 .2
3 1.67 .3
4 1.04 .2
5 1.55 .2

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The response addresses the queries posted in 199 words with references.

//The investment decisions are very critical, so, the investors should look carefully for available investment avenues in critical manner. Here, we will discuss which investment avenue in better on the basis of past return and standard ...

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Ashish Sharma, MBA (IP)
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  • MBA (IP), International Center for Internationa Business
  • BBA, University of Rajasthan
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