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Section 2 (show your work for each question in section 2 to get credit) 31. Your portfolio consists of $100,000 invested in a stock which

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Section 2 (show your work for each question in section 2 to get credit) 31. Your portfolio consists of $100,000 invested in a stock which has a beta=0.8, $150,000 invested in a stock which has a beta-1.2, and $50,000 invested in a stock which has a beta = 1.8. The risk-free rate is 7 percent. Last year this portfolio had a required rate of return of 13 percent. This year nothing has changed except for the fact that the market risk premium has increased by 2 percent (two percentage points). What is the portfolio's current required rate of return? (5 points)

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