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Problem - Solving: Based on the given information, answer the following questions. You constructed a portfolio consisting of the following stocks: Expected Return Beta $

Problem-Solving: Based on the given information, answer the following questions.
You constructed a portfolio consisting of the following stocks:
Expected Return Beta $ amount invested
Stock A 4%0.5 $15,000
Stock B 10%1.2 $10,000
Stock C 18%2.2 $25,000
1. The expected return of your portfolio is ___%[rounded to two decimal places](2')
2. The portfolio beta is ___[Rounded to two decimal places](2')
3. Given your answer to question 2, is your portfolio ___ riskier than the market portfolio? (1')(choose between "more" or "less")
4. Suppose CAPM also predicts the expected return of your portfolio is the same value as in question 1. Given your portfolio beta and a risk-free rate of 3%, what would be the market risk premium? (2')
___%[rounded to two decimal places]
4. Assume Mona has a retirement fund, and it has exactly the same annual return as the expected return of your portfolio. She has been making a deposit of $500 at the end of each month into this account for 8 years. How much will she have in this retirement fund now? (3')
$ ____[Rounded to the nearest cent]
Bonus: (5 points)
You plan to visit friends in Asia 6 years later. The trip is expected to cost $15,000 at that time. Your parents are helping you by depositing $5,000 today in a Certificate of Deposit, paying 5.5% interest annually, maturing 6 years from now. Uncle Joe has agreed to pay for all remaining expenses. If you put Uncle Joe's gift in an investment fund earning9% today for the next 6 years, how much must he deposit today so that you reach your goal of $15,000 at the end of year 6?
$ ____[Rounded to the nearest cent]

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