Please assist with the following problem.
Problem: You are considering investing in a portfolio of the common stocks of four publicly-traded companies with betas as follows:
ABC - 0.7
DEF - 0.9
GHI - 1.3
JKL - 1.9
If the risk-free rate is 4.5% and the market rate is 8.5%, what is your expected rate of return of following stocks?
a. ABC?
b. DEF?
c. GHI?
d. JKL?
e. If your portfolio is 20% in ABC, 30% in DEF, 30% in GHI, and 20% in JKL, what is your portfolio (weighted average) expected rate of return?