1. A Sports sales company, the Eisenhower Corporation in 1956, invested in the stock market the following:
______________________________Portfolio Betas__________________
Security $ Invested Expected Return Beta
Kindred Healthcare: $1,000 8% .80
Ford: 2,000 12 .95
GMC: 3,000 15 1.10
Comerica: 4,000 18 1.40
a. What is the Beta of this portfolio?
b. Does this portfolio have more or less systematic risk than an average asset?
(Hint: Determine the portfolio weights.)