-Dye 390 DIGICK... Capital Save Homework: Chapter 8 Homework = Chegg 9 Question: (P8-20 (similar to) Score: 0 of 1 pt HW Score: 20%, 2 of 10 pts Question Help (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: .:. The risk-free rate is 6 percent. Also, the expected return on the market portfolio is 13 percent. Capital Asset Pricing Model Brod BLAJMY a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stock's expected return, The approach where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the preceding information, plot the security market line on paper. Plot the stocks from your portfolio on your graph. Show transcribed image d. From your plot in parte, which stocks appear to be your winners and which ones appear to be losers? e. Why should you consider your conclusions in part d to be less than certain? Expert Ansv a. The expected return of your portfolio is %. (Round to two decimal places.) Data Table Anonymous 1.990 answe beta of the risk free rat Stock Percentage of Portfolio Beta expected Expected Return 19% 16% 21% 10% 27% 1 30% 1.05 2 35% 0.82 3 12% 1.25 4 4 20% 0.62 5 3% (Click on the icon in order to copy its contents into a spreadsheet.) expected market risk = 11.5%-69 expected Enter your answer in Print Done parts 8 Comment > remaining Check