8. Pepcico Inc. has a beta of 0.59. The risk-free rate is 2% and the market risk premium is 8%. What is the required rate of return of Pepcico? Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)

7.

You are composing a two-stock portfolio consisting of 40 percent Stock X and 60 percent Stock Y. Given the following information, find the standard deviation of this portfolio.

Company	Beta	Expected Return	Variance	Correlation Coefficient
X	1.4	28%	0.30	CORRX,Y = 0.3
Y	2.4	12%	0.16

Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)