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I'm stuck figuring out how to solve the homework problem below: John's investmentportfoliohas total capital of $2,000,000 invested inthree stocks: Stock Amount Invested Beta A

I'm stuck figuring out how to solve the homework problem below:

John's investmentportfoliohas total capital of $2,000,000 invested inthree stocks:

Stock

Amount Invested

Beta

A

$1,000,000

1.6

B

$800,000

2.2

C

$200,000

0.3

Currently, the risk-free return is 3 percent and the expected market rate of return is 9 percent.

a. Compute the beta coefficient of the portfolio

b. What is the estimated equation for the Security Market Line?

c. Compute the portfolio's required rate of return (see part b)

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