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Last digit of ID# is 2, please help Assume the risk-free rate (TRF) is 5 percent and the required return on the market portfolio (rm)
Last digit of ID# is 2, please help
Assume the risk-free rate (TRF) is 5 percent and the required return on the market portfolio (rm) is 20% minus the last one digit of your PSU ID number. Please write your PSU ID number at the first line of your answer. Stock amount invested Beta (6) Expected Return 1 $25,000 1.00 13% 2 $35,000 10.75 11% 3 $20,000 (1.35 15% Part a, Find the expected return for the portfolio. Hint: Expected return is a weighted average return. (10 points) opt Part b, Using the same information above, find the beta for the portfolio. Hint: Portfolio beta is a weighted average beta (5 points) Part c. Using the same information above, find the required rate of return for the portfolio. Hint: the required rate of return of a stock-based portfolio is based on CAPM/SML. (10 points) Part d, Please comment on the portfolio's expected rate of return and required rate of return. (Hint: using SML, above or below the line). (5 points) Edit View Insert Format Tools TableStep by Step Solution
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