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Data Table ick on the following icon in order to copy its contents into a spreadsheet.) STOCK PERCENTAGE OF PORTFOLIO 10% 20% 25% 5% 40%

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Data Table ick on the following icon in order to copy its contents into a spreadsheet.) STOCK PERCENTAGE OF PORTFOLIO 10% 20% 25% 5% 40% BETA 1.10 0.75 1.30 0.65 1.65 EXPECTED RETURN 17% 14% 21% 11% 26% Print Done Homework: Chapter 6 HW Save 18 of 23 (0 complete) HW Score: 0%, 0 of 23 pts Score: 0 of 1 pt Problem 6-23 (similar to) Question Help The risk-free rate is 5 percent. Also, the expected return on the (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: market portfolio is 9 percent a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the foregoing information, plot the security market line. Plot the stocks from your portfolio on your graph. d. From your plot in part c, which stocks appear to be your winners and which ones appear to be losers? e. Why should you consider your conclusion in part d to be less than certain? a. What is the expected return of your portfolio? % (Round to two decimal places.)

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