LO3 12. Calculating Portfolio Betas You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.34 and the total portfolio is equally as risky as the market, what must the beta be for the other stock in your portfolio? LO4 13. Using CAPM A stock has a beta of 1.15 , the expected return on the market is 11.3 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? Page 389 LO4 14. Using CAPM A stock has an expected return of 11.4 percent, the risk-free rate is 3.9 percent, and the market risk premium is 6.8 percent. What must the beta of this stock be? LO4 15. Using CAPM A stock has an expected return of 11.85 percent, its beta is 1.08 , and the risk-free rate is 3.9 percent. What must the expected return on the market be