Calculate the required rate of return for a portfolio


Suppose that ABC has a beta of 0.75 and XYZ has a beta of 1.50, and that the market return is expected to be 10% and the risk-free rate is 2%. 1-Using the above data, calculate the required rate of return (%) for stock ABC using the CAPM. 2-Using the data from above, calculate the required rate of return (%) for stock XYZ using the CAPM. 3-Using the data from above, calculate the required rate of return (%) for a portfolio consisting of 50% in ABC and 50% in XYZ.

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Financial Management: Calculate the required rate of return for a portfolio
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