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

Investment

Beta

$$190,000$

$1\mathrm{.}45$

$285,000$

$0\mathrm{.}60$

$475,000$

$1\mathrm{.}30$

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 $17$ percent and that the risk$-$free rate is $6$ percent. $($Round beta answer to $3$ decimal places, e$.$g$.52\mathrm{.}750$ and expected rate of return answer to $2$ decimal places, e$.$g$.52\mathrm{.}75\%.)$

Beta of the portfolio

Expected rate of return

$\%$Current Attempt in Progress

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.

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 $17$ percent and that the risk$-$free rate is $6$ percent. $($Round beta

answer to $3$ decimal places, e$.$g$.52\mathrm{.}750$ and expected rate of return answer to $2$ decimal places, e$.$g$.52\mathrm{.}75\%.)$

Beta of the portfolio

Expected rate of return