7.2

An individual has $10,000 invested in a stock with a beta of 0.5 and another $40,000 invested in a stock with a beta of 1.3. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.

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Assume that the risk-free rate is 4.5% and the market risk premium is 3%. so the required return for the overall stock market? is 7.5%

What is the required rate of return on a stock with a beta of 1.9? Round your answer to one decimal place.

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