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Question 4 Assume the yield curve is flat and the T-bill rate is 5%. The market return rate is 10%. The required rate of return

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Question 4 Assume the yield curve is flat and the T-bill rate is 5%. The market return rate is 10%. The required rate of return for Stock Ais 11.3%. An investor is forming a portfolio by investing $50,000 in stock A and $25,000 in stock B. Stock B has a beta of 1.5. What is the required rate of return on the investor's portfolio? Not yet answered Points out of 5 Stock Required return IRF IM Beta Weight Remove flag 11.3% B Select one: . 10.2% O b. 11.70% . 10.7% O d. 6.8% Oe. 11.2% Clear my choice Question 5 Not yet answered You are an investor in common stock, and you currently hold a well-diversified portfolio which has a required return of 12%, a beta of 1.2, and a total value of $8,000. You plan to increase your portfolio by buying 200 shares of AT&E at $10 a share. AT&E has a beta of 1.8. The current T-bill rate is 3% Points out of 5 Flag question What will be the required return of your portfolio after you purchase the new stock? Select one: O a 12.54% Ob 12.45% 12.35% O d. 12.90% O e. 10.67%

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