(Portfolio beta and security market line) You own a portfolo consisting of the following stocks. The risk free rate is 6 percent. Also, the expected return on the market portfolio is 15 percent a. Calculato the expected return of your portfolio Clint. The expected return of a portfolio equals the weighted average of the individual stock's expected retum, where the weights are the percentago invested in each stock) b. Calculate the portfolio bela c. Given the preceding information, plot the security marketing on paper Plot the stock from your portion on your graph d. From your plot in parts, which stocks appear to be your winners and which onespear to be on? e. Why should you consider your conclusions in part d to be less than certain? 8 Homework 9 of 10 (9 complete) HW Score - X ou own a portfolio consisting of the following stocks: The risk-free rate is 6 percent. Also, the expected return on the market portfolio is 13 olio. ere the weights are the p 0 Data Table security pear to ns in part Stock Percentage of Portfolio Beta Expected Return % (R1 1 10% 1.00 19% 2 20% 0.80 16% 3 8% 1.22 23% 4 0.70 11% 5 57% 1.65 26% 5% Print Done and then click Check Answer Clear All