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Question 12) Consider the betas and portfolio weights provided below. The risk-free rate is 2.25% and the market risk premium is 8.15%. Risk Free Rate

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Question 12) Consider the betas and portfolio weights provided below. The risk-free rate is 2.25% and the market risk premium is 8.15%. Risk Free Rate Market Risk Premium (Rm RA 1 509 6.50% Stocks Citibank Wells Fargo Bank of America JP Morgan Beta 0.85 1.02 0.65 1.65 Weights 3596 25% 1596 2596 Part A) According to the Capital Asset Pricing Model (CAPM), What is the expected return for each stock? 3 points) Stocks Expected Returns Wells Fargo Bank of America JP Morgan Citbank Part B) What is your portfolio Beta? points) Part 1 Doct Anal Part 2 Security Marketing

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