1. An individual has $45000 invested in a stock with a beta of 0.4 and another $

    1. An individual has $45000 invested in a stock with a beta of 0.4 and another $60000 invested in a stock with a beta of 1.5. If these are the only two investments in her portfolio what is her portfolios beta? Round your answer to two decimal places.2. Suppose you manage a $3.98 million fund that consists of four stocks with the following investments: Stock Investment Beta A $260000 1.50 B 650000 -0.50 C 1220000 1.25 D 1850000 0.75 If the markets required rate of return is 12% and the risk-free rate is 4% what is the funds required rate of return? Round your answer to two decimal places. %3. Assume that the risk-free rate is 6.5% and that the market risk premium is 6%. What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places. % What is the required rate of return on a stock with a beta of 2.2? Round your answer to two decimal places. %

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