If the return on the market is 10 and the risk-free rate is


A portfolio is characterized by the following

Stock

s invested Expected Return Beta
X $2,000 15% 2
Y $8,000 12% 1.6
Z $2,000 8% 1.2

a. Calculate the portfolio's expected return.
b. Calculate the beta of the portfolio.
c. If the return on the market is 10% and the risk-free rate is 3%, what is the required return on the portfolio?

 

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Finance Basics: If the return on the market is 10 and the risk-free rate is
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