Problem $12-6$ Market Model

The following three stocks are available in the market:

E$($R$)\backslash$beta

Stock A $11\mathrm{.}5\%1\mathrm{.}24$

Stock B $13\mathrm{.}41\mathrm{.}04$

Stock C $15\mathrm{.}91\mathrm{.}44$

Market $14\mathrm{.}91$

Assume the market model is valid.

a$.$

The return on the market is $15\mathrm{.}7$ percent and there are no unsystematic surprises in the returns. What is the return on each stock? $($Do not round intermediate calculations and enter your answers as a percent rounded to $2$ decimal places, e$.$g$.,32\mathrm{.}16.)$

b$.$ Assume a portfolio has weights of $20$ percent Stock A$,35$ percent Stock B$,$ and $45$ percent Stock C$.$ The return on the market is $15\mathrm{.}7$ percent and there are no unsystematic surprises in the returns. What is the return on the portfolio?