Risk-free rate and required return on the market

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1. REQUIRED RATE OF RETURN

Assume that the risk-free rate is 6.5% and the required return on the market is 13%. What is the required rate of return on a stock with a beta of 2.4? Round your answer to two decimal places. %

2. PORTFOLIO BETA

An individual has $35,000 invested in a stock with a beta of 0.7 and another $65,000 invested in a stock with a beta of 1.8. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.

Reference no: EM131892641

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