Question: Problem 10-27 Portfolio Beta and Required Return (LG3) You hold the positions in the table below. Price Shares Beta Amazon.com $ 40.80 100 3.8 Family

Problem 10-27 Portfolio Beta and Required Return (LG3)

You hold the positions in the table below.

Price

Beta

Amazon.com

40.80

100

3.8

Family Dollar Stores

30.10

150

1.2

McKesson Corp

57.40

0.4

Schering-Plough Corp

23.80

200

0.5

What is the beta of your portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is the required return of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.)

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