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An investment advisor has recommended a $50, 000 portfolio containing assets R. J, and K: $25, 000 will be invested in asset R, with an

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An investment advisor has recommended a $50, 000 portfolio containing assets R. J, and K: $25, 000 will be invested in asset R, with an expected annual return of 12 percent and beta of 0.8, $10, 000 will be invested in asset J, with an expected annual return of 18 percent and beta of 1.2: and $15, 000 will be invested in asset K, with an expected annual return of 8 percent and beta of 1.5. a. What is the expected annual return of this portfolio? b. What is the beta of this portfolio? flotation cost is 3% of its par value. The bonds mature m 8 years and are

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