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III. An investor is forming a portfolio by investing $70,000 in stock A that has a beta of 1.50, and $30,000 in stock B that

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III. An investor is forming a portfolio by investing $70,000 in stock A that has a beta of 1.50, and $30,000 in stock B that has a beta of 0.6. The return on the market is equal to 12 percent and Treasury Bills have a yield of 4 percent. What is the beta of the portfolio and what is the required rate of return on the investor's portfolio? ( 10 points)

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