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The following three stocks are available in the market: E ( R ) beta Stock A 1 0 . 9 0 % 1 .

The following three stocks are available in the market:
E(R)\beta
Stock A 10.90%1.24
Stock B 13.401.02
Stock C 16.101.41
Market 14.601.00
Assume the market model is valid. (Do not round intermediate calculations. Round the answers to 2 decimal places.)
a. This part of the question is not part of your Connect assignment.
b. What is the expression for the return on a portfolio with weights of 25 percent in stock A,40 percent in stock B, and 35 percent in stock C?
Return
Stock A
%
Stock B
%
Stock C
%
c. Suppose the return on the market is 15.40 percent. What is the return on a portfolio with weights of 25 percent in stock A,40 percent in stock B, and 35 percent in stock C?
The portfolio return
%

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