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please answer both parts 1)Quantitative Problem: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta A $300,000 1.35 B
please answer both parts
1)Quantitative Problem: You are holding a portfolio with the following investments and betas:
Stock Dollar investment Beta
A $300,000 1.35
B 200,000 1.60
C 400,000 0.80
D 100,000 -0.35
Total investment $1,000,000
The market's required return is 11% and the risk-free rate is 4%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
____ %
2)An individual has $35,000 invested in a stock with a beta of 0.7 and another $55,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
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