What must the expected return on stock be

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Reference no: EM132053067

A) A stock has a beta of 1.02, the expected return on the market is 0.09, and the risk-free rate is 0.05. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234).

B) You own a portfolio that has $4100 invested in Stock A and $4900 invested in Stock B. If the expected returns on these stocks are 0.18 and 0.01, respectively, what is the expected return on the portfolio?

Enter the answer with 4 decimals (e.g. 0.1234).

Reference no: EM132053067

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