A an individual has 25000 invested in a stock with a beta


A. An individual has $25,000 invested in a stock with a beta of 0.4 and another $75,000 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. __________

B. 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 2.3? Round your answer to two decimal places. %________

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Financial Management: A an individual has 25000 invested in a stock with a beta
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