if management decided to sell one of the investments which one should be selected 629720

Aug 30, 2021 | Uncategorized

Items 1 and 2 are based on the following:

Natco has the following investment portfolio.

Expected return

Investment

Beta

Investment A

15%

$100,000

1.2

Investment B

10%

$300,000

-0.5

Investment C

8%

$200,000

1.5

Investment D

8%

$100,000

-1.0

What is the expected return of the portfolio?

  1. 10.25%
  2. 9.86%
  3. 12.5%
  4. 11.35%

If management decided to sell one of the investments, which one should be selected?

  1. Investment A.
  2. Investment B.
  3. Investment C.
  4. Investment D.