Question 2 % Portfolio Manager is maintaining the following data of stock Q and R: Stock Q Stock R Weight 80% 20% Beta 0.9 1.3 Total Return 12% 13% Market Risk Premium 7% 7% Risk Free Rate 4% 4% Determine the 1. Required (or Expected) Return of stock Q and R using Capital Ass II. Expected Return of a portfolio III. Actual Return of a portfolio IV. Alpha generated by portfolio manager g data of stock Q and R: 4 out of 7 points ER Q and R using Capital Asset Pricing Model (CAPM) (2+2+2+1 = 7 marks)