The attached file contains hypothetical data for working this problem. Goodman Corporations and Landry Incorporateds stock prices and dividends, along with the Market Index, are shown in the file. Stock prices are reported for December 31 of each year, and dividends reflect those paid during the year. The market data are adjusted to include dividends.

Data as given in the problem are shown below:
	Goodman Industries		Landry Incorporated		Market Index
Year	Stock Price	Dividend	Stock Price	Dividend	Includes Divs.
2020	$30.32	$2.23	$85.12	$3.52	18,475.97
2019	$23.53	$2.65	$79.32	$3.65	12,174.55
2018	$28.61	$2.73	$74.32	$3.45	12,019.97
2017	$15.21	$2.57	$87.12	$3.47	10,743.05
2016	$12.63	$2.23	$95.12	$3.55	9,455.42
2015	$13.21	$2.25	$84.25	$3.25	8,163.96

f. If you formed a portfolio that consisted of 60% Goodman stock and 40% Landry stock, what would be its beta and its required return?
The beta of a portfolio is simply a weighted average of the betas of the stocks in the portfolio, so this portfolio's beta
would be:
Portfolio beta =
g. Suppose an investor wants to include Goodman Industries stock in his or her portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfolios required return if it consists of 25% of Goodman, 15% of Stock A, 40% of Stock B, and 20% of Stock C.
								Beta	Portfolio Weight
							Goodman		30%
							Stock A	0.769	20%
	Stock B	0.985	30%
	Stock C	1.423	20%
			100%
	Portfolio Beta =
Required return on portfolio:		=	Risk-free rate +	Market Risk Premium *	* Beta
		=
		=