The current risk-free rate of return is 3.5% and the market risk premium is 4%. If the beta coefficient associated with a firms stock is 1.7, what is the stocks required rate of return?

4.0%

5.6%

8.1%

10.3%

13.0%

Bill Dukes $100,000 invested in Stock A, $35,000 in Stock B, and the remainder of his $200,000 portfolio is in Stock C. Stocks A, B, and C have expected returns of 4%, 6%, and 8%. What is the portfolio's expected return? (Hint: First calculate the dollars invested in Stock C.)

5.65%

6.27%

6.80%

6.89%

9.85%