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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