31) You own a portfolio equally invested in two stocks. One of the stocks has a beta of 1.3 and the total portfolio is equally as risky as the market. What is the beta of the second stock? A) 1 B) 09 C) 1.5 D) 0.5 E) 0.7 32) The risk-free rate of retum is 2.7 percent and the market risk premium is 6.9 percent. What is the expected rate of return on a stock with a beta of 1.08 ? A) 11.47 percent B) 12.22 percent C) 11.79 percent D) 10.92 percent E) 10.15 percent 33) Suppose you have a three-stock portfolio. Details of the portfolio are provided in the table. The T-bill rate is 2% and the required return on the market is 10%. Please answer the following questions ( Q33Q34) based on this information: Q33: What is the beta of your portfolio? A) 1.2 B) 1 Q 111 D) 09 E) 08 34) According to the CAPM, what is the expected return of your portfolio? A) 6.8% B) 8.8% C. 97% D) 10.8% E) 13% 35) The risk-free rate of return is 5.2 percent and the expected market return is 8.4 percent. What is the expected rate of return on a stock with a beta of 1.34 ? A) 8.29 percent B) 9.49 percent C) 16.46 percent D) 13.60 percent E) 18.22 percent