Question: Use the table for the question(s) below. Consider the following three individuals portfolios consisting of investments in four stocks: Stock Beta Peter's Investment Paul's Investment

Use the table for the question(s) below. Consider the following three individuals portfolios consisting of investments in four stocks:

Stock

Beta

Peter's Investment

Paul's Investment

Mary's Investment

Eenie

1.3

2500

5000

10,000

Meenie

1.0

2500

5000

10,000

Minie

0.8

2500

5000

minus5000

Moe

0.5

2500

minus5000

minus5000

Assuming that the riskfree rate is 4% and the expected return on the market is 12%, then required return on Peter's Portfolio is closest to:

A.8%

B.12%

C.9%

D.10%

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