QUESTION $3$:

Tiffany Srivastava has the following investments:

a$.$ What is the required rate of return on the portfolio?

b$.$ What is the portfolio beta?

c$.$ Tiffany has decided to take on some more risk in order to increase her return. She sold some of the

LR and some of the CYCL stocks and invested the proceeds into SCT Limited stock she already

held. If the new portfolio's required return is $14\mathrm{.}15\%$ and the new portfolio's beta is $1\mathrm{.}38,$ and she

has $$2,000,000$ to invest then how much should be her investment in each stock?What is the required rate of return on the portfolio?

b$.$ What is the portfolio beta?

c$.$ Tiffany has decided to take on some more risk in order to increase her return. She sold some of the

LR and some of the CYCL stocks and invested the proceeds into SCT Limited stock she already

held. If the new portfolio$$s required return is $14\mathrm{.}15\%$ and the new portfolio$$s beta is $1\mathrm{.}38,$ and she

has $$2,000,000$ to invest then how much should be her investment in each stock?