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). Whats 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 investors portfolio

		11.0%
		15.0%
		12.0%
		10.5%