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(Portfolio beta and security market line) 2. You own a portfolio consisting of the following stocks: STOCK BETA PERCENTAGE OF PORTFOLIO 20% 30% 1 EXPECTED

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(Portfolio beta and security market line) 2. You own a portfolio consisting of the following stocks: STOCK BETA PERCENTAGE OF PORTFOLIO 20% 30% 1 EXPECTED RETURN 16% 14% 1.1 2 0.8 3 15% 1.15 22% 4 25% 0.55 1.55 5 10% 12% 25% The risk-free rate is 5 percent. Also, the expected return on the market portfolio is 9 percent. D Question 4 0.5 pts a. Calculate the expected return of your portfolio %. (round to 2 decimals and assume %) (Hint: The expected return of a portfolio equals the weighted average of the individual stocks expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta .... (round to 2 decimal places)

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