Your investment club has only two stocks in its portfolio


Your investment club has only two stocks in its portfolio; $45,000 is invested in a stock with a beta of 0.8, and $45,000 is invested in a stock with a beta of 1.4. What is the portfolio's beta? Round your answer to two decimal places.

AA Industries’ stock has a beta of 1.7. The risk-free rate is 6%, and the expected return on the market is 10%. What is the required rate of return on AA's stock? Round your answer to two decimal places.

Assume that the risk-free rate is 3.5% and that the market risk premium is 4%.

What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places. %

What is the required rate of return on a stock with a beta of 2.3? Round your answer to two decimal places. %

 

What is the required return on the market? Round your answer to two decimal places. %

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Business Management: Your investment club has only two stocks in its portfolio
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