Qestions 1-2. Thanks!

If you invest $5,000 in a stock with a beta of 0.5 and $3,000 in a stock with a beta of 2. What is the beta of the portfolio? 1.2608 1.5899 1.0625 1.0092 Question 2 ( 20 points) AAA company has a beta of 2 . If the risk-free rate of return is 3% and the expected return on the market portfolio is 4%, what would the required rate of return be on AAA ? 5% 7% 8% 6% Question 3 (20 points) Which of the following statement is NOT correct? A security with b=1 means that a stock's return is expected to move in the opposite direction with the market's return. A beta of 1 implies the security is just as risky as the average stock on the market