1 A,B

ANSWER

Biggie Inc. has a stock beta of 0.46 and Shakur Inc. has a stock beta of 1.51. If you put 44% of your money in Biggie and 56 % in Shakur, what will be the beta of your portfolio? (Round to 2 decimals.) Select one: a. -0.08 b. 1.05 c. 0.44 d. 1.93 e. 2.19 Serenity Parts is considering a new project. They believe that the project has a beta of 1.56. The T-bill rate is 6% (risk-free rate) and the S&P 500 return (which represents "market") is 16%. What is the appropriate expected return on the new project? (Answer as a percentage and round to 2 decimals.) Select one: a. 23.60% b. 21.60 % c. 19.70 % d. 23,40 % e. 24.15%