You have just invested in a portfolio of three stocks. The amount of money that you invested in each stock and its beta are summarized below. Stock A B C Investment $202,000 303,000 505,000 Beta of the portfolio Beta Expected rate of return 1.59 0.59 Calculate the beta of the portfolio and use the Capital Asset Pricing Model (CAPM) to compute the expected rate of return for the portfolio. Assume that the expected rate of return on the market is 15 percent and that the risk-free rate is 7 percent. (Round beta answer to 3 decimal places, e.g. 52.750 and expected rate of return answer to 2 decimal places, e.g. 52.75%.) 1.16 %

You have just imvested in a portfolio of three stocks. The amount of money that you imvested in each stock and its beta are summarized below: Calculate the beta of the portfolio and use the Capital Asset Pricing Modef (CAPM) to compute the expected rate of return for the portfolio. Assume that the expected rate of return on the market is 15 percent and that the risk-free rate is 7 percent. (Round beta answer to 3 decimal places, eg. 52.750 ond expected rate of return answer to 2 decimaf places, e.8.52.75\%) Beta of the portfolio Expected rate of return x