o Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Su Styles QUESTION 46 I. For the next 3 questions suppose the following holds: The risk free rate is 6%, the market risk premium (-ERM-RF) is 8% 2. You invest $600 in Security A with a beta of 1.2 and $400 in Security 8 with beta of 1.6. What is the beta of this formed portfolio? c 1.15 1.32 1.36 ? 1.41 ? 1.52 I points QUESTION 47 1. Based on the CAPM, what is the required rate of return of your portfolio? 14.67% 15.12% 16.88% 17.23% ? 18.12% 1 points QUESTION 48 A share of stock sells for $100 today. It will pay a dividend of $10 per share at the end of the year Its beta is 1.6. What do investors expect the stock sell for at the end of the year? Assume that RF-796 and E(RM-1696 1. 104.9 109.6 ? 115.7 C 119.2