Suppose you invest $20,000 into the following portfolio of stocks: 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. Suppose over the next year Ball has a return of 12.5%, Lowes has a return of 21%, and Abbott Labs has a return of -10%. Given this information, what is the annual rate of return on your portfolio?

A) 10.55%

B) 7.6%

C) 3.8%

D) 23.50%

What is the expected annual return on XYZ stock if it has a beta of 1.5, the expected return from a market portfolio is 18% per year, and the expected return from a risk-free investment is 2% per year?

A) 56%

B) 61%

C) 24%

D) 26%