Question
Required Rate of Return Stock R has a beta of 1.3, Stock S has a beta of 0.45, the expected rate of return on an
Required Rate of Return
Stock R has a beta of 1.3, Stock S has a beta of 0.45, the expected rate of return on an average stock is 10%, and the risk-free rate is 6%. By how much does the required return on the riskier stock exceed that on the less risky stock? Do not round intermediate calculations. Round your answer to two decimal places.
%
Portfolio Beta
Your investment club has only two stocks in its portfolio. $40,000 is invested in a stock with a beta of 0.5, and $65,000 is invested in a stock with a beta of 2.5. What is the portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places.
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