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A portfolio has the following stocks: Stock Amount Invested Stock's Beta A $2,000 1.4 B $8,000 1.2 C $15,000 1.6 Suppose that the risk-free rate
A portfolio has the following stocks:
| Stock | Amount Invested | Stock's Beta |
| A | $2,000 | 1.4 |
| B | $8,000 | 1.2 |
| C | $15,000 | 1.6 |
Suppose that the risk-free rate of return is 4% and the market return is 20%.
(1) What are the weights for Stocks A, B and C, respectively? (
2) What is the portfolios beta?
(3) What is the expected return for Stock A?
(4) What is the expected return for the portfolio?
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