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An individual has $25,000 invested in a stock with a beta of 0.6 and another $55,000 invested in a stock with a beta of 2.0.
- An individual has $25,000 invested in a stock with a beta of 0.6 and another $55,000 invested in a stock with a beta of 2.0. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places.
2.Assume that the risk-free rate is 5% and the required return on the market is 8%. What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places.
3. Assume that the risk-free rate is 5.5% and the market risk premium is 6%.
- What is the required return for the overall stock market? Round your answer to two decimal places. %______
- What is the required rate of return on a stock with a beta of 2.2? Round your answer to two decimal places. %________
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