A stock has a beta of 1.3. Another stock has a beta of 1.2. You invested $4,450 in the first stock, $2500 in the second and $1800 in the risk free asset. What is the beta of this three-asset portfolio? Your Answer: Answer The market is expected to yield 14.9%. The risk free rate is 2%. What is the expected return of a stock with a beta of 1.7? answer in percentage without the symbol Your Answer: Answer You want to create a portfolio with a beta of 1.6. You want to accomplish this goal by investing in a mutual fund that follows the market and in a stock with a beta of 2.4. Assuming you have $24,900 to invest, how much (in $) do you need to invest in the market fund? Your Answer: Answer The market is expected to yield 12% and the risk free rate is 2%. You currently hold a portfolio with a beta of 0.75 worth $44,000. You want to re-allocate your assets by investing in another portfolio with a beta of 2.9. How much will you have to invest in this new risky asset so that the resulting portfolio will have an expected return of 16%? HINT: the value of your porfolio will remain unchanged, you just take money away from one asset to add it to the other. answer in $ not in percentage. Your