Question 3 a) Using the formula given below , calculate the beta and the required returns of the respective portfolios (using Capital Asset Pricing Model (CAPM ). (Calculations must be done manually . Show all workings ) Please assume the following to answer this question : . A beta of 1.45 and 0.76 for Stock A and Stock B respectively A return on a market portfolio (Rm ) of 9% and a risk - free rate (Rf ) of 2% Portfolio : P1 P2 P3 P4 P5 P6 P7 P8 P9 P10 P1 1 Weight for 100 % 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Stock A Weight for 0% 10% 20% 30% 40 % 50% 60% 70% 80 % 90% 100 % Stock B Beta BPI Bp2 BP3 BP4 BP5 B P6 BP7 Bps B p9 B PIO B pil Required Return Rpl RP2 RP3 RP4 RP5 RP6 RP7 Reps R. p9 RP10 Roll