b ir Jar forms an aggressive growth portfolio by investing 22% of his...
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ir Jar forms an aggressive growth portfolio by investing 22% of his savings in Ford stock, 21% in Toyota stock, 23% in Kia stock, 11% in an index fund, and e last 23% is allocated on a bond fund. Assume for simplicity that the index fund is a good proxy to the market portfolio and has a beta equal to 1 , whereas ne bond fund is a good proxy to the riskless asset. The beta of Ford stock is 1.11, the beta of Toyota is 1.43 , and the beta of Kia is 1.76 . If the expected return of the market index is 11% and the risk-free asset yields 7%, what are the beta and the expected return of Jar Jar's portfolio? Give your answer rounded to two decimal places. This question has 2 parts (i.e., you will be clicking "Verify" twice). What is the beta of the portfolio? P=Correctresponse:1.06 Based on the value of P=1.06, what is the expected return of Jar Jar's portfolio? Give your answer rounded to two decimal places. E(rP)=
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