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Consider a portfolio that is composed of the following stocks. The treasury rate is 3%, the market risk premium is 5%. What is the expected

Consider a portfolio that is composed of the following stocks. The treasury rate is 3%, the market risk premium is 5%. What is the expected return of the portfolio? Stock A B. Amount Invested $4 million $2 million $2 million $1 million $1 million Beta 1.8 1.6 1.4 0.8 0.4 D E . 11.0% O 12.4% 9.8% 09.0% 10.2%

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