You hold a portfolio of three stocks with the following investments and individual betas. Stock A $15,000; beta of 1.75 Stock B $40,000; beta of 0.90 Stock C $20,000; beta of 1.40

a) (4 points) What is the portfolio beta? Show all work. b) (4 points) If the current risk-free rate of return is 3% and the return on an average risk security, r(m), is 7%, what is the required rate of return on the portfolio? Show all work.