QUESTION 36

1. An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 2.1, and $50,000 in stock B which has a beta of 0.6. The market risk premium is equal to 5% and treasure bonds have a yield of 3% (r_RF). Whats the portfolio beta?

   		1.60
   		1.85
   		1.50
   		1.35

5 points

QUESTION 37

1. Using the information in Question 36, calculate the required rate of return on the investors portfolio

   		8.25%
   		10.55%
   		9.75%
   		9.15%