Assume you have the following companies in a portfolio: Percentage of portfolio, Beta Savola 38 %, 0

a) A portfolio's beta is the weighted average beta of individual assets

So, Beta of the portfolio

=38%*0.95 + 15%*1.42+ 27%*1.69+ 20%*0.81

=1.1923

b) Market risk reflects the systematic risk of a security which is the undiversifiable risk and it is represented by security's Beta. This risk has to be taken by an Investor as it cannot be diversified and therefore an Investor is rewarded for taking this risk

Company risk includes the systematic or market risk as well as the unsystematic or idiosyncratic risk which is specific to the security or the industry type, This risk can be diversified and hence Investors are not rewarded for taking unsystematic risk. So, company risk is a broader risk which an investor faces if he/she possesses only that company's stock and his/her portfolio is not well diversified. Standard deviation of a security is a measure of company risk

c) I will be interested in a stock which has a high growth potential and I would like to select some Good IT or Pharma Stocks