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3. If Risk free rate, rri = 2%, Im (Market return) 8%, Beta = 1.4, What is the required return of the stock A using

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3. If Risk free rate, rri = 2%, Im (Market return) 8%, Beta = 1.4, What is the required return of the stock A using the CAPM model? 4. If Risk free rate, rre= 2%, Im (Market return) 8%, Beta = 0.7, What is the required return of the stock B using the CAPM model? 5. If Risk free rate, rre = 2%, rm (Market return) 8%, Beta = 1, What is the required return of the stock C using the CAPM model? 6. If you invest $6,000 in stock A, $4000 in stock B and $10,000 in stock C, a) What is the Beta of your above portfolio (use information in problems 4, 5 and 6)? b) What is the return of your portfolio

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