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1.) Nick Williams owns a 3-stock portfolio with a total investment value equal to $200,000. What is the weighted average beta of Nick's 3-stock portfolio?

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1.) Nick Williams owns a 3-stock portfolio with a total investment value equal to $200,000. What is the weighted average beta of Nick's 3-stock portfolio? Recall that bp=i=1Nw b. What is the expected return of Nick's 3-stock portfollo? Expected rate of return =r^=i=1NPri 2.) If the US T-Bond rate is 4.00%(0%=5%), the required return on the stock market is 12%(C%=12%). What is the required rate of return for Stock REB if the company's beta is 0.5(b,=0.5) ? a.) Use the SML equation to calculate fown (the required return for REB. b.) Identify cosa it on the graph below. c.) Calculate the Market Risk. Premium (RPM). d.) What is beta for the market portiolio? e.) is REB more or less risky than the stock market

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