Question: Question 2 (10 marks) A portfolio is characterized by the following: Stock S's invested X $2,000 Y $8,000 z $2,000 Expected Return 15% 12% 8%

Question 2 (10 marks) A portfolio is characterized by the following: Stock S's invested X $2,000 Y $8,000 z $2,000 Expected Return 15% 12% 8% Beta 2.0 1.6 1.2 a) Calculate the portfolio's expected return. (3 marks) b) Calculate the beta of the portfolio. (3 marks) c) If the return on the market is 10% and the risk-free rate is 3%, what is the required rate of return on the portfolio? (4 marks)

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