I picked Ford Motor Company (F) and WalMart Stores (WMT)

1. What are the betas listed for these companies? Ford Motor Company (F) with a beta of 1.34 and WalMart Stores (WMT) with a 0.37 found on Wednesday, June 18, 2014 @10:46 p.m.

2. If you made an equal dollar investment in each stocks what would be the beta of your portfolio? The weighted average of my beta portfolio would be: 0.5*1.34 + 0.5*0.37 = 0.855 3.

3. Apply the Capital Asset Pricing Model (CAPM) Security Market Line to estimate the required return on these two stocks. Assumptions and Data: Note that you will need the risk-free rate and the market risk premium. Assume a 5% market risk premium. To get the current yield on 10-year Treasury securities go to Finance!Yahoos (www.finance.yahoo.com) -click on Market Data - Bonds. You will use the current yield on 10-year Treasury securities as the risk-free rate to estimate the required rate of return on stocks.

The expected return rate for Ford Motor (F) is 2.58+1.34*5 = 9.28%

The expected return rate for WalMart Stores (WMT) is 2.58+0.37*5 = 4.43%

4. Compare the required return on these stocks calculated using CAPM in question #3 against their historical return over the last 52 weeks, found in the Yahoo!Finance Profile. Is there a difference between these returns? Is this a problem? Why is there a difference?

I do not understand how to get the answer for question #4. Thank you