Modern Portfolio Concepts Please Complete the Calculation for The Yellow Boxes RRR= RFR + (Beta x (Market Return - RFR)) 4.0% 3.5% 2.5% 1.09 2.00 1.25 14% 2.5% Portfolio Return 25.0% 10.0% 3.0% 11.0% 15.6% 18.0% 28.1% 8.0% 21.9% 5.0% 34.4% 14.1% Portfolio Return Stock Market Re New Stock Price 10% 25% 15% 35% 2.0 3.0 0.8 1.0 CAPM Risk Free Rate BETA Market Return Risk Free Rate RRR Stock A Stock B Stock C Stock D Portfolio Return Stock A Stock B Stock C Stock D BETA Portfolio Beta Stock A Stock B Stock C Stock D Total Portfolio Total Portfolio Total Portfolio 2.25 1.5 0.75 8% 4.0% $5,200 $4,100 $3,800 $7,200 $20,300 $2,500 $4,500 $3,500 $5,500 $16,000 Stock Price 25 32 15 37 $6,500 $4,500 $3,500 $5,500 $20,000 13% 3.5% Investment % 25.6% 20.2% 18.7% 35.5% Portfolio Return Investment Investment % 32.5% 22.5% 17.5% 27.5% Portfolio Return Retum Return Beta