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5. (10 points) Consider the following 4-stock portfolio: Stock Investment Beta A $100,000 1.50 B $150,000 -0.25 $250,000 1.25 D $500,000 0.75 The market required

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5. (10 points) Consider the following 4-stock portfolio: Stock Investment Beta A $100,000 1.50 B $150,000 -0.25 $250,000 1.25 D $500,000 0.75 The market required rate of return is 12 percent and the risk-free rate is 4 percent. a. Find the required rate of return of the portfolio. (4 marks) b. Find Bp, the beta of this portfolio. (3 marks) c. Use the portfolio 3 your obtained in part b. and the SML to verify that the required rate of return of the portfolio is the same as that in part a

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