Answer the following TWO questions based on information provided below: Wagner Assets Management Group holds 3 stocks in their investment portfolio. The amount of the investment and beta of each stock is listed below. Stock A B- Investment Beta $ 200,000 and th 1.50 300,000 -0.50 b) 0.85 c) 0.95 d) 1.05 Cex co 500,000 is clo 1.20 Currently the market expected rate of return is 10%, and the risk-free rate is 4%.wilot adi sawant araz ar 04/02) 9812 13. Beta of the portfolio isto an instans a) 0.75 Visq mtoo 14. Based on Capital Asset Pricing Model (CAPM), the expected return of the portfolio is a) 8.5% b) 9.7% c) 10.3% d) 11.5% the formats shay (

Wagner Assets Management Group holds 3 stocks in their investment portfolio. The amount of the investment and beta of each stock ie liotan L-1- Currently the market expected rate of return is 10%, and the risk-free rate is 4%. 13. Beta of the portfolio is a) 0.75 b) 0.85 c) 0.95 d) 1.05 14. Based on Capital Asset Pricing Model (CAPM), the expected return of the portfolio is a) 8.5% b) 9.7% c) 10.3% d) 11.5%