The risk-free rate of return is 4 percent and the expected return on the market is 13.5 percent. What is the required return for a stock with a beta of 1.16? Answer: You own a portfolio which is 20 percent invested in U.S. Treasury bills, 30 percent invested in Stock A with a beta of 1.23, 10 percent invested in stock B with a beta of.95, and the remainder is invested in stock C. Stock C is equally as risky as the market. The risk-free rate of return is 4.2 percent and the expected return on the market is 11 percent. What is the portfolio beta