Question: Find the expected return for the following portfolio. Expected Return Betas % invested Stock A 30% 1.75 35% Stock B 20% 2.75 30% Stock C

Find the expected return for the following portfolio.

Expected Return Betas % invested

Stock A 30% 1.75 35%

Stock B 20% 2.75 30%

Stock C 15% 1.80 20%

Stock D 10% 1.00 15%

Find the Required Return for the portfolio if the risk free rate is 4% and the market return is 9% (use the SML equation).

Is the portfolio a buy or sell?

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