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You hold three stocks in your portfolio. Using the information in the table below, answer the following questions. C Weight Beta Expected Return Stock A

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You hold three stocks in your portfolio. Using the information in the table below, answer the following questions. C Weight Beta Expected Return Stock A 30% 1.80 15% Stock B 20% 1.20 11% Stock C 50% 0.60 7% Show your work a. What is the beta of your portfolio? b. What is the required return of the portfolio using CAPM? Assume the market return is 11% and the risk-free rate is 2% c. What is the expected return of the portfolio? d. Given the information that you have calculated, is the portfolio undervalued or overvalued? Explain

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