stock has a beta of 1I.75. What does the beta of the second stock have to be if you want the portfolio risk to equal that of the overall market? A. 125 B. 1.50 C. 1.75 15. You wouldlike to create a potfolio that is equally invested in a risk-friee asset and two stocks. The one D. 2.25 E. 2.75 16. You own a stock that has an expected return of 13.6 percent and a beta of 1.5. The U.S. Treasury bill is ing 4.2 percent and the inflation rate is 3.8 percent. What is the expected rate of return on the market? A. 9.74 percent B. 9.80 percent C. 10.46 percent D. 10.87 percent E. 11.43 percent 17. The stock of Mansfield Motors is expected to produce the following returns given the various states economy. What is the expected return on this stock? of the State of of State of Rate o Recession Norma 2008 15 Boom A. 8.4 percent B. 8.8 percent C. 9.1 percent D. 9.5 percent E. 9.7 percent 18. You own a portfolio which consists of $6,100 in stock A, $2.200 in stock B, S8,500 in stock C, and $2.,800 in stock D. What is the portfolio weight of stock C? A. 38 percent 3. 43 percent 46 percent 51 percent 53 percent