A common stock has a beta of 1.1. The risk free rate is equal to 4% and the market risk premium is equal to 6% and the Security Market Line is valid. The current price of the stock is equal to $15, and based on this price the expected return on the stock is equal to 15%. The stock is undervalued. (Yes = 1, No = 2).

Group of answer choices

Yes

No

Mike Flannery holds the following portfolio: Stock Investment Beta A $150,000 1.40 B 50,000 0.80 100,000 1.00 D 75,000 1.20 Total $375,000 What is the portfolio's beta? (round off to two decimal places) 01.29 O 1.42 1.56 01.06 01.17