An investor currently holds the portfolio

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Reference no: EM13921297

An investor currently holds the following portfolio:

Amount

Invested

8,000 shares of Stock A $16,000 Beta = 1.3

15,000 shares of Stock B $48,000 Beta = 1.8

25,000 shares of Stock C $96,000 Beta = 2.2

a)The beta for the portfolio is

A) 1.99.

B) 1.77.

C) 1.45.

D) 1.27.

b) If the risk-free rate of return is 4% and the expected market return is 13%, then the required return on the portfolio is

A) 14.00%.

B) 17.91%.

C) 21.91%.

D) 23.85%.

Reference no: EM13921297

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