Tweety has a portfolio worth a total of

$76,000

with

$13,800

in stock

A;$48,600

in stock B;

$8,400

in stock

C

; and remaining amount in a risk-free treasury bills. The beta of stock

A

is 1.21 and beta of stock

B

is 1.08 . If the beta of this portfolio is same as the beta of the market, calculate the beta of stock

C

and identify beta of the treasury bill.\ If the risk-free rate of retum is

4%

and the expected return on the market is

10%

, calculate the required rate of returns on stocks

A,B

, and

C

respectively. (Use CAPM to find required retum of each stock)

Tweety has a portfolio worth a total of $76,000 with $13,800 in stock A;$48,600 in stock B; $8,400 in stock C; and remaining amount in a risk-free treasury bills. The beta of stock A is 1.21 and beta of stock B is 1.08 . If the beta of this portfolio is same as the beta of the market, calculate the beta of stock C and identify beta of the treasury bill. If the risk-free rate of return is 4% and the expected return on the market is 10%, calculate the required rate of returns on stocks A,B, and C respectively. (Use CAPM to find required return of each stock)