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1. You have a stock portfolio that consists of the following positions (price and beta as of 12:34 PM on 10/21/2019): Shares Price Beta Amazon
| 1. You have a stock portfolio that consists of the following positions (price and beta as of 12:34 PM on 10/21/2019): | |||||
| Shares | Price | Beta | |||
| Amazon | 25 | 1782.52 | 1.63 | ||
| Apple | 90 | 240.38 | 1.10 | ||
| Tesla | 85 | 253.26 | 0.32 | ||
| Costco | 75 | 301.62 | 0.93 | ||
| Disney | 50 | 130.32 | 0.72 | ||
| (a) What is the portfolio beta? [Hint: You will need to compute the weights for each stock.] | |||||
| (b) If the market return is expected to be 2.5% and the risk-free rate is 1%, | |||||
| then what is the required rate of return on the portfolio? | |||||
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