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A. Find the expected return for the following portfolio. Expected Return. Betas. % Invested Stock A 12% .75 60% Stock B 10% 1.00 40% B.

A. Find the expected return for the following portfolio.

Expected Return. Betas. % Invested

Stock A 12% .75 60%

Stock B 10% 1.00 40%

B. Find the Required Return for the portfolio if the risk-free rate is 3% and the market return is 8% (use SML equation)

C. Is the portfolio a buy or sell?

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