Question 12 q SEai We have the following CAPM E(Ri) 06+.08 Beta; a) If Stock X has a beta of 2, what is the required rate of return? b) If we form a portfolio that is invested 40% in Stock X and 60% in the risk free asset, what i; c) the expected rate of return on that portfolio? What is the beta of that portfolio? Stock Z has a beta of 1.5 Andan expected return of 15%. Is at a good buy? d)Construct a portfolio of Stock X and the risk free asset which has a beta of 1.5. e) What is the expected return for this purpose