Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y. Xs beta is 1.50 and Ys beta is 0.70. What is the portfolios beta?

a. 0.65

b. 0.72

c. 0.80

d. 0.89

e. 0.98

Cooley Companys stock has a beta of 1.40, the risk-free rate is 4.25%, and the market risk premium is 5.50%. What is the firms required rate of return?

a. 11.36%

b. 11.65%

c. 11.95%

d. 12.25%

e. 12.55%