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Assume you have a portfolio with the stocks and their information: Stock. Total $ invested. Beta. Expected Return DuPont. $25,000 0.99 10.12% McDonalds Corp. $50,000

Assume you have a portfolio with the stocks and their information:

Stock. Total $ invested. Beta. Expected Return

DuPont. $25,000 0.99 10.12%

McDonalds Corp. $50,000 0.72 8.16%

Ford. $60,000 1.24 12.2%

A.) Calculate Beta of the Portfolio. B.) Calculate the Expected return for the portfolio using the CAPM and the beta value for the portfolio. Assume the market risk premium (Rm Rrf) equals 6% and the Risk free rate (Rrf) equals the rate on a 2 year treasury 0.25%.

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