Question 1

(A) REQUIRED RATE OF RETURN A stock has a beta of 0.5. The risk-free rate is 9%, and the market risk premium is 8%. What is the stocks required rate of return? Express answer as a percentage.

(B) BETA A stock has a required return of 12%, the risk-free rate is 8%, and the market risk premium is 5%. What is the stock's beta? Round to ONE decimal place.

(c) PORTFOLIO BETA An individual has $30,000 invested in a stock with a beta of 0.5 and another $65,000 invested in a stock with a beta of 1.8. If these are the only two investments in her portfolio, what is her portfolio's beta? Do NOT round intermediary calculations. Round to TWO decimal places.

Please do accurate answers becuase this question has no talorance of wrong answers expalaination is required just formulas