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You hold a delivered $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a

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You hold a delivered $100,000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b =1.80. What will the portfolio's new beta be? 1.286 1.255 1.244 1.194 1.165 Linke Motors has a beta of 1.30, the T-bill rate is 3.008, and the T- bond rate is 6.58. The annual return on the stock market during the past 3 years was 15.008, but investors expect the annual future stock market return to be 13.008. Based on the SML, what is the firm's required return? 13.51% 13.86% 14.21% 14.58% 14.95%

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