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Portfolio EMU has two stocks: Asset Exp. Return ER; Invested Bi Fran $32,000 10.0% 0.8 Fred $48,000 14.0% 1.67 Market: Risk free: Rp = 4.0%

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Portfolio EMU has two stocks: Asset Exp. Return ER; Invested Bi Fran $32,000 10.0% 0.8 Fred $48,000 14.0% 1.67 Market: Risk free: Rp = 4.0% Market Return RM - 11.0% RR; = R+ + Bi (RM -RF) ER = WAX ERA + Wg x ERg+...... Bp = WAX BA+WgxB8+....... Question: What is the portfolio beta Bp of EMU? =

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