For Questions 1-3 Use the Information from the Following Table

question 20

Essay

For questions 1-3 use the information from the following table
$\begin{array} { l c c l } \text { Security } & \text { Return } & \text { Standard Deviation } & \text { Beta } \\\text { A } & 16 \% & 20 \% & 1.2 \\\text { B } & 12 \% & 25 \% & 0.8 \\\text { Risk-free asset } & 4 \% & 2 ? ? & \text { ??? }\end{array}$
-What is the portfolio expected return and the portfolio beta if
you invest 35% in A,45% in B and 20% in the risk-free asset?

---

Definitions:

Percent Equivalent

A value expressing a number as a fraction of 100, used to describe the relative size of a part to a whole.

Repeating Decimal

A decimal fraction in which a figure or group of figures repeats indefinitely.

Percent Equivalent

A value expressed as a percentage that represents a fraction of 100, indicating a part of a whole in percentage terms.

Terminating Decimal

A numerical value expressed in the decimal system with a limited number of digits following the decimal point.