Answer Question 2; parts 1-4 and please show all work:

2. Part 1... Portfolio Beta Your investment club has only two stocks in its portfolio. $20,000 is invested in a stock with a beta of 0.7, and $35,000 is invested in a stock with a beta of 1.3. What is the portfolios beta?

2. Part 2... Required Rate of Return AA Corporations stock has a beta of 0.8. The risk-free rate is 4%, and the expected return on the market is 12%. What is the required rate of return on AAs stock?

2. Part 3... Required Rates of Return Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required return on (1) the market, (2) a stock with a beta of 1.0, and (3) a stock with a beta of 1.7?

2. Part 4... Fama-French Three-Factor Model An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai 5 0, bi 5 1.2, ci 5 20.4, and di 5 1.3, what is the stocks predicted return?

Please show all work and explanation.