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(LGI0-3) 10-22 Portfolio Beta You own $7,000 of Human Genome stock that has a beta of 3.5. You also own $8,000 of Frozen Food Express

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(LGI0-3) 10-22 Portfolio Beta You own $7,000 of Human Genome stock that has a beta of 3.5. You also own $8,000 of Frozen Food Express (beta = 1.6) and $10,000 of Molecular Devices (beta 0.4). What is the beta of your portfolio? (LG10-3) 10-28 Portfolio Beta and Required Return You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is he required return of the portfolio? (LG10-3) Beta Price Shares Advanced Micro Devices FedEx Corp. 4.2 $ 14.70 300 1.1 Microsoft 120.00 50 0.7 Sara Lee Corp. 100 28.90 0.5 17.25 150

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