Using the information above (the stocks Beta, the rate on the 3-month Treasury and the average 52-week return for the S&P 500), compute the required rate of return for your stock. In other words, plug these numbers into the Capital Asset Pricing Model (CAPM), the table is below.

Next, select another stock to add to your portfolio.

Use the CAPM to determine the expected return of this additional stock.

Here is the information you will need to complete the table:

Apple: Beta=1.31, 52-week change=46.99%, and 52-week change for the S&P=21.90%

Amazon: Beta=1.34, 52-week change=57.67%, and 52-week change for the S&P=22.03%

3-month Treasury Rate is 1.41%.

Unit 4 Discussion Table
Complete the required information in the table.
Stock Symbol	% of portfolio	Beta	Contribution to portfolio Beta	Expected Return (using CAPM)	Contribution to Portfolio Return
Apple	50%	1.31
Amazon	50%	1.34
Portfolio Beta				Portfolio Return