1. Karens portfolio, which has a beta of 1.10 consists of three mutual funds: an international fund, a utility fund and a technology fund. The international fund has a beta of 1.5 and makes up 20% of the portfolio. The utility fund has a beta of 0.5 and the technology fund has a beta of 1.3. If the portfolios beta equal 1.10, how much of Karens portfolio is invested in the technology fund?

 2. Jerry's portfolio is invested equally in 5 stocks (Each stock has a weight of .20) and has a required return of 9.4%. The risk free rate is 5% and the market risk premium is 4 %. What is the portfolios beta? Assume that jerry's portfolio is on the SML 

  

3. The last stock added to this portfolio was Lauren Clothin, which has a beta of 0.30. What was the portfolios beta before Laurens stock was added?


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    Finance 3 questions
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