In: Finance
Your investment club has only two stocks in its portfolio. $10,000 is invested in a stock with a beta of 0.5, and $75,000 is invested in a stock with a beta of 1.5. What is the portfolio's beta? Round your answer to two decimal places.
Required Rate of Return
AA Corporation’s stock has a beta of 1.1. The risk-free rate is 2.5% and the expected return on the market is 11%. What is the required rate of return on AA's stock? Round your answer to two decimal places.
Required Rate of Return
Suppose rRF = 5%, rM = 12%, and rA = 14%.
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.