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Business, 18.03.2021 01:30 elwinelwin9475

You are considering the construction of a portfolio comprised of equal investments in each of four different stocks. The betas for each stock are found​ below: Asset Beta A 2.10 B 0.95 C 0.40 D −1.60 ​(Click on the icon in order to copy its contents into a spreadsheet.​) a. What is the portfolio beta for your proposed investment​ portfolio? b. How would a 25 percent increase in the expected return on the market impact the expected return of your​ portfolio? c. How would a 25 percent decrease in the expected return on the market impact the expected return on each​ asset? d. If you are interested in decreasing the beta of your portfolio by changing your portfolio allocation in two​ stocks, which stock would you decrease and which would you​ increase? ​ Why?

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