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    Beta of Portfolio; Portfolio Weights

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    1. A Sports sales company, the Eisenhower Corporation in 1956, invested in the stock market the following:

    ______________________________Portfolio Betas__________________
    Security $ Invested Expected Return Beta
    Kindred Healthcare: $1,000 8% .80
    Ford: 2,000 12 .95
    GMC: 3,000 15 1.10
    Comerica: 4,000 18 1.40
    a. What is the Beta of this portfolio?
    b. Does this portfolio have more or less systematic risk than an average asset?
    (Hint: Determine the portfolio weights.)

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    ______________________________Portfolio Betas__________________

    Security $ Invested Expected ...

    Solution Summary

    The solution calculates the Beta for the portfolio in an Excel spreadsheet.