Question: solve for a-e show all steps (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: The risk-free rate is
(Portfolio beta and security market line) You own a portfolio consisting of the following stocks: The risk-free rate is 8 percent. Aso, the expected return on the market portfolio is 13 percent. a. Calculate the expected return of your porffolio. (Hint. The expected return of a portfolio equals the weighled average of the individual stock's expected retum, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the preceding insormation, plot the security market line on paper. Plot the stocks from your portfolio on your graph. d. From your plot in part c, which stocks appear to be your winners and which ones appear to be losers? 6. Why should you consiber your conclusions in part d to be less than certain? a. The expected return of your portlolo is 6. (Round to hwo dedimal places.) Data table
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