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You've assembled the following portfolio: Stock Beta Portfolio weight 1 1.8 0.2 2 1.1 0.3 3 0.3 0.5 The expected market return is 7% and

You've assembled the following portfolio:

Stock	Beta	Portfolio weight
1	1.8	0.2
2	1.1	0.3
3	0.3	0.5

The expected market return is 7% and the risk-free rate is 2%. Assume that the CAPM holds.

What is the beta of the portfolio?

What is the expected return of your portfolio?

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