Hi, i have the following problem and have to calculate the REQUIRED rate of Return, this is what i have so far,

1.(8 Points) Use the following data:

Market risk premium = 10%

Risk-free rate = 2%

Beta of XYZ stock = 1.6

Beta of PDQ stock = 2.4

Investment in XYZ stock = $15,000

Investment in PDQ stock = $60,000

You have no assets other than your investments in XYZ and PDQ stock.

What is the required return of your portfolio? Show all work.

Required Return = Risk Free Rate + Beta(Return On Market - Risk Free Rate)

Required return = 2% = .02 + 1.6 ( .10 - .02) =