Question: A) You have a $200,000 portfolio consisting of the following stocks. What is the beta of your portfolio? Stock Investment Beta A $20,000 1.20 B

A) You have a $200,000 portfolio consisting of the following stocks. What is the beta of your portfolio?


Stock

Investment

Beta

A

$20,000

1.20

B

$50,000

0.80

C

$80,000

1.00

D

$50,000

1.20

Total

$200,000

B) Risk-free rate is 4%, and market return is 6%. Please calculate the required return of this portfolio using CAPM.

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