6. Karine is constructing a new portfolio. She wants to invest $50,000 in stock X that has a beta of 1.50 and $25,000 in stock Y that has a beta of 0.90. The return on the market is equal to 6 percent and Treasury bonds have a yield of 4 percent. What is the required rate of return on the Karine's portfolio? A) 6.8% B) 6.6% C) 5.8% D) 7.0% E) None of the above 7. Johnny wants to construct a complete portfolio of $10,000. He is planning that the complete portfolio be composed of Treasury bills that pay 5% and a risky portfolio, P. constructed with two risky securities, A and B. The optimal weights of A and B in P are 60% and 40%, respectively. A has an expected rate of return of 5%, and B has an expected rate of return of 4%. In order Johnny to form a complete portfolio with an expected rate of return of 16%, he should (approximately) invest of your complete portfolio in Treasury bills. A) 60% B) 74% C) 26% D) 50% E) None of the above 8. Sam wants to invest in stock market and he contacted his broker to get some information regarding some of preferable stocks. The broker send the following data on three stocks to Sam. If Sam is a strict risk minimizer he would choose