What is the beta of louise portfolio

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Question: 1. Louise owns a portfolio that consists of 3 stocks: A, B, and C. Stock A, which has a beta of 1.71, makes up 13 percent of her portfolio. Stock B, which has a beta of 1.27, makes up 31 percent of her portfolio. Stock C has a beta of 0.31. What is the beta of Louise's portfolio? Round your answer to 2 decimal places (for example, 2.89, 0.70, or 1.00).

2. If the expected return on the market is 16.89 percent, the inflation rate is 2.07 percent, the risk-free rate is 5.82 percent, and Fairfax Paint common stock has a beta of 0.67, then what is the expected return for Fairfax Paint stock? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131925272

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