Question: Course: Financial Management Principles. Topic: Risk and Return. 5. If you hold a portfolio made up of the following stocks: Proportion of Portfolio Beta Stock

Course: Financial Management Principles. Topic: Risk and Return.

5. If you hold a portfolio made up of the following stocks: Proportion of Portfolio Beta Stock A $2,000 1.5 Stock B $5,000 1.2 Stock C $3,000 .8 What is the beta of the portfolio? 6. If the beta is 1.15. and the risk-free return is 6% and the market rate is 9%, what is the expected return? 7. A company's common stock has a beta of .8. If the expected risk-free return is 2% and the risk premium is 5%, what is the expected return on the stock

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