Katy owns a portfolio that consists of four stocks as follows: Stock No. of shares Price...

Katy owns a portfolio that consists of four stocks as follows:

Stock	No. of shares	Price per share	Beta
A	150	$15.00	0.50
B	200	$25.00	1.20
C	300	$19.00	1.45
D	100	$35.00	2.00

If the S&P 500 return is expected to be 7.5%, and the T-bills yield 2%, what return should Katy require from stock A?
If the S&P 500 return is expected to be 7.5%, and the T-bills yield 2%, what return should Katy require from stock C?
What return should Katy require from her portfolio?

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 9 months ago

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