39.An investor is forming a portfolio by investing $150,000 in stock A which has a beta of 2.40, and $150,000 in stock B which has a beta of 0.60. The market risk premium is equal to 5% and treasure bonds have a yield of 3% (r_RF). What's the portfolio beta?

1.60

1.95

1.50

1.80

40.Using the information in Question 39, calculate the required rate of return on the investor's portfolio

8.5%

10.5%

12.75%

9.5%