NAME: Part II - Problems (10 points each) - Show your Work unless otherwise indicated Problem 1: a. Allard Corporation's stock has beta = 0.7. The risk-free rate is 4% and the expected return on the market is 14%. What is the required rate of return on Allard's stock? market is 11%. b. Monza, Inc. stock has a required return = 14%. The risk-free rate is 3% and the expected return on the i. Calculate the beta for Monza's stock (show your answer to two decimal places) ii. If Monza's beta were 2.1, what would be the new required rate of return? c. You have two stocks in your portfolio. $40,000 is invested in a stock with a beta of 1.1 and $120,000 is invested in a stock with a beta of 1.9. What is the portfolio's beta? blem 2: Elan Company makes electric scooters and has the following forecast: Demand for Scooters Probability of This Demand Rate of Return if Demand Occurring Occurs ak 0.20 30% rage 0.50 20% 40% ng 0.30 Page 6