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Over this 14+ year period, Kim’s net investment was $385,000 and by the end of last month, her portfolio was worth over $890,000. Despite having gone through the financial crisis, Kim’s. Track your stocks and investments with MSN Money's portfolio manager. You can also create multiple watchlists, synced across all your devices. But, if you’re saving for retirement or your newborn’s college tuition, and you don’t need your money for 10, 20 or 30 years, you’re better off investing in riskier, higher-return assets. Suppose you have invested $100,000 in a portfolio of Potpourri and Magnolia, and the beta of the portfolio is 1.77. How much did you invest in each stock? What is the expected return on the portfolio? Question 5 Consider the following two stocks: Stock i Beta Expected Return A 1.4 25% B 0.7 14% Assume the CAPM holds. Keep in mind that this is the calculation for portfolio variance. If a test question asks for the standard deviation then you will need to take the square root of the variance calculation. Percentage values can be used in this formula for the variances, instead of decimals. Example The following information about a two stock portfolio is available.

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