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revision question 4: You have a $40,000 portfolio consisting of Intel, GE, and P&G. You put $20,000 in Intel, $8,000 in GE, and the rest

revision question 4: You have a $40,000 portfolio consisting of Intel, GE, and P&G. You put $20,000 in Intel, $8,000 in GE, and the rest in P&G. Intel, GE, and P&G have betas of 0.6, 1.5, and 0.9, respectively. What is your portfolio beta? If the risk-free rate is 3%. The market risk premium is 7%. What is the required return according to CAPM? If the portfolio offers a rate of return of 10%, is this sufficient to compensate for its risk? Please explain your answers (5 marks)

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