A) If you formed a portfolio that consisted of 58% Bata and 42% Renata, what would be its beta and its required return?

B). Suppose an investor wants to include Bata Shoes stock in his or her portfolio. Stocks A, B, and C are currently in the portfolio, and their betas are 0.769, 0.985, and 1.423, respectively. Calculate the new portfolios required return if it consists of 25 percent of Bata, 15 percent of Stock A, 40 percent of Stock B, and 20 percent of Stock C.

Please show your working in excel

B C E F G H H J 1 Beta Shoe Renata Ltd. Year Market Index Inc. Divds Market Returns Price Dividend Return Price Dividend Return 2 3 4 5 2019 2018 2017 2016 2015 2014 33.250 31.550 32.400 34.350 35.375 36.625 2.600 2.400 1.940 2.250 1.666 2.100 13.629% 4.784% -0.029% 3.463% 1.136% 54.750 54.300 52.750 53.000 51.500 54.750 1.500 3.400 1.850 2.250 1.900 2.300 3.591% 9.384% 3.019% 7.282% -2.466% 9740.98 7444.70 8002.98 7394.03 6684.28 5317.00 30.844% -6.976% 8.236% 10.618% 25.715% 6 7 8 9 9 Average Annual Returns 4.597% 4.162% 13.688% 10 11 Standard Deviation 5.392% 4.543% 15.043% 12 13 Coefficient of Variation 1.173 1.092 1.099 14 15 B C E F G H H J 1 Beta Shoe Renata Ltd. Year Market Index Inc. Divds Market Returns Price Dividend Return Price Dividend Return 2 3 4 5 2019 2018 2017 2016 2015 2014 33.250 31.550 32.400 34.350 35.375 36.625 2.600 2.400 1.940 2.250 1.666 2.100 13.629% 4.784% -0.029% 3.463% 1.136% 54.750 54.300 52.750 53.000 51.500 54.750 1.500 3.400 1.850 2.250 1.900 2.300 3.591% 9.384% 3.019% 7.282% -2.466% 9740.98 7444.70 8002.98 7394.03 6684.28 5317.00 30.844% -6.976% 8.236% 10.618% 25.715% 6 7 8 9 9 Average Annual Returns 4.597% 4.162% 13.688% 10 11 Standard Deviation 5.392% 4.543% 15.043% 12 13 Coefficient of Variation 1.173 1.092 1.099 14 15