Calculate expected return for you computer company stock

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Reference no: EM13929483

Assume you stock portfolio is comprised of: 60% of your total is in a computer company stock (that has a beta of 1.3, the risk-free rate is 5%, and the expected return on the market as a whole is 11%); and 40% of your total is in the petroleum company stock (that has a beta of 1.3, the risk free rate is 5%, and the market risk premium is 11%). Calculate:

a. The expected return for you computer company stock.

b. The expected return for you petroleum company stock.

c. The expected weighted return for you portfolio.

Reference no: EM13929483

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