1. A stock has an expected return of 13.2 percent and a beta of 1.18, and the expected return on the market is 12.2 percent. What must the risk free rate be?

2.

You have a portfolio with the following:

Stock	Number of Shares	Price	Expected Return
W	800	$ 49	10%
X	700	26	14
Y	450	62	12
Z	675	47	13

Required:

What is the expected return of your portfolio?

Expected return of the portfolio

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