Stock X has an expected return of $10\%,$ a beta coefficient of $0\mathrm{.}9,$ and standard deviation of expected returns of $35\%.$ Stock Y has an expected return of $12\mathrm{.}5\%,$ a beta of $1\mathrm{.}2,$ and standard deviation $25\%.$ The risk free rate is $8\%,$ and the market risk premium is $6\%.$

Calculate the required rate of return $($RRR$)$ for this portfolio, which has $$35,700$ invested in Stock X and $$20,500$ invested in Stock Y $.$

Question $12$Answer

a$.$

$13\mathrm{.}40\%$

b$.$

$14\mathrm{.}15\%$

c$.$

$15\mathrm{.}20\%$

d$.$

$14\mathrm{.}06$