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4. Find the expected return for the following portfolio. Expected Return Betas % invested Stock A 14% 1.75 20% Stock B 20 2.75 40% Stock
4. Find the expected return for the following portfolio. Expected Return Betas % invested Stock A 14% 1.75 20% Stock B 20 2.75 40% Stock C 15% 1.80 20% Stock D 10% 1.00 20%
b. Find the Required Return for the portfolio if the risk free rate is 4% and the market return is 8% (use the SML equation).
c. Is the portfolio a buy or sell?
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