# Question: A Determine the expected return and beta for the following

a. Determine the expected return and beta for the following portfolio:

b. Given the foregoing information, draw the security market line and show where the securities and portfolio fit on the graph. Assume that the risk- free rate is 2 percent and that the expected return on the market portfolio is 8 percent. How would you interpret these findings?

b. Given the foregoing information, draw the security market line and show where the securities and portfolio fit on the graph. Assume that the risk- free rate is 2 percent and that the expected return on the market portfolio is 8 percent. How would you interpret these findings?

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