Use a risk-free rate of 2% and a market return of 6% for the next 3 questions 1. What will be the required return for a stock with a beta of 1.8? a. 12.80% b. 10.80% C. 9.20% d. 8.40% 2. You have a portfolio with $10,000 invested in Stock A with a beta of 0.7, $20,000 in Stock B with a beta of 1.1, and $20,000 in Stock C with a beta of 2.3. What is the beta and required return of the portfolio? a. beta 1.5, Return = 8.00% b. beta 1.37, Return= 7.48% c. beta 1.37, Return = 10.22% d. beta = 1.5, Return = 11.00% 3. If your $500,000 portfolio has a beta of 1.1, should you add $50,000 of a stock with a beta of 1.5 and an expected return of 7.0%? a. Yes b. No c. Not enough information to