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You are creating a two-stock portfolio comprised of $50,000 in stock Y (whose Beta =.90 ), and $100,000 in stock X (whose Beta is 1.50).
You are creating a two-stock portfolio comprised of $50,000 in stock Y (whose Beta =.90 ), and $100,000 in stock X (whose Beta is 1.50). The market returns 6%, a Treasury yields 4%, while the market risk premium is 2%. What's the required return on the two stock portfolio? 6.8% 6.6% 7.5% 7.0% 5.8%
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