Question: please help i dont know how to do 5 and 6! 5. The table below gives the amount invested and betas for three stocks. Stock
5. The table below gives the amount invested and betas for three stocks. Stock Amount Invested Beta GM $10,000 1.0 IBM $10,000 1.2 WMT $20,000 0.7 a. Using the CAPM, if the expected return for the market is 9% and the risk-free rate is 3%, what is the expected return for each stock? b. What is the beta for this portfolio based on the invested amounts? c. Using the CAPM, what is the expected return for this portfolio? 6. You have been provided with the following data on three firms and the market: Security Oi Pim 0.90 Firm 0.12 A 1.10 Firm B 0.4 [ii] 0.24 0.75 iii Firm C 0.10 v The Market 0 0.01 (vi) The risk-free asset Fill in the missing values (i-vi) in the table
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