5. Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .75, .87, 1.26, and 1.76, respectively. What is the portfolio beta? Question 6 1 pts Note: The next three problems work through the calculation of each variable in the CAPM. 6. Using the CAPM: Beta A stock has an expected return of 11.4 percent, the risk-free rate is 3.7 percent, and the market risk premium is 7.1 percent. What must the beta of this stock be?

5. Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are .75,.87,1.26, and 1.76 , respectively. What is the portfolio beta? Question 6 1 pts Note: The next three problems work through the calculation of each variable in the CAPM. 6. Using the CAPM: Beta A stock has an e pected return of 11.4 percent, the risk-free rate is 3.7 percent, and the marl risk premium is 7.1 percent. What must the beta of this stock be