Question: Consider the following three-person portfolios consisting of investments in four stocks: Stock Beta Peter's investment Paul's Investment Maria's investment Enie 1.3 2,500 5,000 10,000 Meenie

Consider the following three-person portfolios consisting of investments in four stocks:

Stock

Beta

Peter's investment

Paul's Investment

Maria's investment

Enie

1.3

2,500

5,000

10,000

Meenie

1.0

2,500

5,000

10,000

It will pass

0.8

2,500

5,000

-5,000

Moe

-0.5

2,500

-5,000

-5,000

Required: Assuming the risk-free rate is 4% and the expected market return is 12%, calculate the required return on Maria's portfolio.

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