FIN2601 ASSIGNMENT 1 SEM 1 OF 2026 EXPECTED QUESTIONS AND ANSWERS

, 1.1)
Probability Market Return
0.1 10% 0.01
0.2 12% 0.024
0.4 13% 0.052
0.2 16% 0.032
0.1 17% 0.017
Expected return E(Rm) 0.135

1.2)
Investment Beta (investment *beta)Weighted Beta

Freight and cargo
160 0.5 80


Warehousinga nd
distribution
120 2 240


Courier and last‑mile
delivery
80 4 320

Fleet management
and vehicle leasing
80 1 80


Customs clearing
and freight
forwarding

60 3 180

Sum of
weight
Total investment
ed
betas
500 900




Beta of portfolio 900/500 1.8