6-23. (Portfolio Beta and security market line) You own a portfolio consisting of the stocks below: PERCENTAGE OF STOCK OR SECURITY PORTFOLIO BETA EXPECTED RETURN 1 20% 1.00 12% 2 30% 0.85 8% 15% 1.20 12% 4 5 25% 0.60 7% 10% 1.60 16% The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 11 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) MyLab