You have a stock portfolio that consists of the following positions:

Corporation	Shares	Price	Beta
Amazon	25	$3299.86	1.16
Apple	90	$143.76	1.22
Tesla	85	$818.32	1.89
Costco	75	$450.66	0.64
Disney	50	$174.41	1.2

A. What is the portfolio beta? [Enter your answer with 2 decimal places; Hint: Compute the portfolio weights for each stock.]

B. If the market return is expected to be 7% and the risk-free rate is 3%, then what is the required rate of return of the portfolio? % [Enter your answer as a percentage with 2 decimals, e.g. 10.25 for 10.25%.]

Answer rating: 100% (QA)

A To calculate the portfolio beta we first need to calculate the weighted average beta of the indivi... View the full answer