You are considering to form a portfolio that includes stock ABC, stock DEF, and stock...
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Finance
You are considering to form a portfolio that includes stock ABC, stock DEF, and stock XYZ. To conduct the relevant analyses, you collect the following information for stock ABC, DEF and XYZ in the table below.
Stock
Amount Invested
Expected Return
Beta
ABC
$ 1,000
0.0198
0.2
DEF
$ 5,000
0.1775
1.5
XYZ
$ 4,000
0.1255
1.2
What is the expected rate of return for your portfolio?
Please round your answer to the fourth decimal. For example, 0.1234.
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