An individual has a total portfolio of $1 million with the following investments: $250,000 invested in Stock A with a beta of 1.3; $300,000 invested in Stock B with a beta of 0.9; $450,000 invested in Stock C with a beta of 1.2. What is the portfolio's beta? If the risk-free rate is 6% and the expected return on the market portfolio is 15%.

What is the market risk premium? 

What is the required return for the portfolio?

Answer rating: 100% (QA)

To calculate the portfolios beta we need to calculate the weighted average of the betas of the indiv... View the full answer