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You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 12 percent and

You hold the positions in the following table. What is the beta of your portfolio? If you expect the market to earn 12 percent and the risk-free rate is 3.5 percent, what is the required return of the portfolio?

Price Shares Beta
Amazon.com $ 40 100 3.8
Family Dollar Stores $ 30 100 1.2

McKesson Corp $ 50 100 0.4
Schering-Plough Corp $ 20 100 0.5

a) 14.21 percent

b) 16.76 percent

c) 13.97 percent

d) 15.38 percent

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