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You are considering three stocks for your portfolio. Stock Exp. Return Standard Correlation Correlation Beta Deviation with A with B A .45 .4 1.5 B

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You are considering three stocks for your portfolio. Stock Exp. Return Standard Correlation Correlation Beta Deviation with A with B A .45 .4 1.5 B .30 .4 0.80 Risk Free Rate 4.00% 0.00 Return on 10.00% 20.0% Market For each of the questions below -- your portfolio is 80% A and 20% B. The beta of your portfolio The total risk of your portfolio is The expected market risk premium is The CAPM says that the required return on your portfolio is

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