A stock has an expected return of 014 its beta is 057 and


A) A stock has an expected return of 0.14, its beta is 0.57, and the risk-free rate is 0.03. What must the expected return on the market be? Enter the answer with 4 decimals (e.g. 0.0567).

B) You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for these four stocks are 1.15, 1.03, 2.96, and 2.64, respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)

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Financial Management: A stock has an expected return of 014 its beta is 057 and
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