E(R) = Rf + beta * [E(R)-Rf]= 5% + beta * 6%// The expected return is equal to the risk-free return plus the risk premium,

< p>Where, beta(portfolio) = w_a * beta_a + w_b * beta_b // The beta of the portfolio is equal to the cumulative sum of the betas of each asset according to its market value weight.

If it is assumed that the market values ??of the two stocks in the portfolio are equal, w_a=w_b=0.5, then E(R) = 5% + (0.5 * 2 + 0.5 * 1.2) * 6% = 14.6%.

Heavyweight stocks are the stocks of listed companies with a huge total capital stock. The total number of the company's shares accounts for a large proportion of the total number of stocks in the stock market, which means it has a large weight. Its rise and fall has a great impact on the stock index. The stock index is calculated using the weighting method. Whoever has the largest stock price multiplied by the total equity will have the largest weight. Weight is a relative concept and is for a certain indicator. The weight of a certain indicator refers to the indicator's overall evaluation. relative importance.

1. The weight is only meaningful when calculating the stock index. The stock index is calculated using the weighting method. Whoever has the largest stock price multiplied by the total share capital will have the largest weight. Weight is a relative concept and is specific to a certain stock. For one indicator. The weight of an indicator refers to the relative importance of the indicator in the overall evaluation. Bank of China and Industrial and Commercial Bank of China rank the top two in terms of total market capitalization, and their rise and fall have a greater impact on the index. A daily limit for small-market capitalization companies may only have an impact of 0.01 points on the index. When ICBC reaches its daily limit, the index rises by 60 points. This is the heavyweight stock.

2. What is the impact of the push-up of index heavyweight stocks in the high-level area? From the perspective of the development of China's A-share market, it illustrates the major changes in market investment concepts. The weak performance in previous years Large-cap stocks are being accepted by institutional investors and small and medium-sized investors in the market. The rise of these varieties reflects to a greater extent the expansion of the team of institutional investors and the sufficient funds in the market stage. It should also be clearly seen that due to the weight Stocks have an absolute impact on the index in the market, and the continuous rise in their prices will also bring about large value deviations. For example, ICBC, which has a strong performance, from the perspective of company development, its future development will be more of a steady development, leapfrogging The probability of such development is very low, and the price of A-shares is about 30% higher than the price of H-shares in the same period. This also shows that ICBC in the A-share market is suspected of being overvalued at least during this period, and it may also be used by other institutions to boost year-end or stock index It is possible to open a futures position, so in the short term, especially from the perspective of annual operating performance, the author believes that it is difficult for ICBC and Bank of China to see excessive performance improvements. Then once this kind of increase exceeds or deviates from the investment value in the stage, The risk of a pullback may occur at any time. Therefore, the promotion of heavyweight stocks should be considered in stages, stock price comparison, operating performance and other factors.