Question: Question Description: 2 stock portfolio return on the market = 13% 3 mon. treasury = 6% A beta = 1.15 B beta = 1.40 Market

Question Description: 2 stock portfolio return on the market = 13% 3 mon. treasury = 6%
A beta = 1.15
B beta = 1.40
Market value of investment in A = $ 125,000
Market value of investment in B = $ 250,000
$ 375,000
What does the SML predict in this required rate of return for the overall portfolio?

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