1a. An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 2.40, and $50,000 in stock B which has a beta of 0.60. The return on the market is equal to 8% and treasure bonds have a yield of 3% (r_RF). What's the portfolio beta?

0.60

1.30

1.50

1.80

1b. Using the information in Question 41, calculate the required rate of return on the investor's portfolio

11.0%

15.0%

12.0%

10.5%