Portfolio Betas & expected returns1. You own a stock
portfolio invested 25% in stock Q, 20% in

stock R, 15% in stock S, and 40% in stock T. The betas for
these stocks are

.84, 1.17, 1.11, and 1.36 respectively. What is the portfolio
beta?2. (Using CAPM) A stock has a beta of 1.05, the expected

return on the market is 11 % and the risk-free rate is 5.2 %.
What must the

expected return on the stock be?3. (Using CAPM) A stock has
an expected return of 10.2%, the

risk-free rate is 4.5%, and the market risk premium is 8.5%.
What must the beta

of this stock be?4. (Using CAPM) A stock has an expected
return of 13.5%, its

beta is 1.17 and the risk-free rate is 5.5%. What must the
expected return on

the market be?

5. (Using CAPM) A stock has an expected return of 14%, its

beta is 1.45, and the expected return on the market is 11.5%.
What must the

risk-free rate be?

Portfolio Betas & expected returns1. You own a stock
portfolio invested 25% in stock Q, 20% in

stock R, 15% in stock S, and 40% in stock T. The betas for
these stocks are

.84, 1.17, 1.11, and 1.36 respectively. What is the portfolio
beta?2. (Using CAPM) A stock has a beta of 1.05, the expected

return on the market is 11 % and the risk-free rate is 5.2 %.
What must the

expected return on the stock be?3. (Using CAPM) A stock has
an expected return of 10.2%, the

risk-free rate is 4.5%, and the market risk premium is 8.5%.
What must the beta

of this stock be?4. (Using CAPM) A stock has an expected
return of 13.5%, its

beta is 1.17 and the risk-free rate is 5.5%. What must the
expected return on

the market be?

5. (Using CAPM) A stock has an expected return of 14%, its

beta is 1.45, and the expected return on the market is 11.5%.
What must the

risk-free rate be?

Portfolio Betas & expected returns1. You own a stock
portfolio invested 25% in stock Q, 20% in

stock R, 15% in stock S, and 40% in stock T. The betas for
these stocks are

.84, 1.17, 1.11, and 1.36 respectively. What is the portfolio
beta?2. (Using CAPM) A stock has a beta of 1.05, the expected

return on the market is 11 % and the risk-free rate is 5.2 %.
What must the

expected return on the stock be?3. (Using CAPM) A stock has
an expected return of 10.2%, the

risk-free rate is 4.5%, and the market risk premium is 8.5%.
What must the beta

of this stock be?4. (Using CAPM) A stock has an expected
return of 13.5%, its

beta is 1.17 and the risk-free rate is 5.5%. What must the
expected return on

the market be?

5. (Using CAPM) A stock has an expected return of 14%, its

beta is 1.45, and the expected return on the market is 11.5%.
What must the

risk-free rate be?

stock R, 15% in stock S, and 40% in stock T. The betas for
these stocks are

.84, 1.17, 1.11, and 1.36 respectively. What is the portfolio
beta?2. (Using CAPM) A stock has a beta of 1.05, the expected

return on the market is 11 % and the risk-free rate is 5.2 %.
What must the

expected return on the stock be?3. (Using CAPM) A stock has
an expected return of 10.2%, the

risk-free rate is 4.5%, and the market risk premium is 8.5%.
What must the beta

of this stock be?4. (Using CAPM) A stock has an expected
return of 13.5%, its

beta is 1.17 and the risk-free rate is 5.5%. What must the
expected return on

the market be?

5. (Using CAPM) A stock has an expected return of 14%, its

beta is 1.45, and the expected return on the market is 11.5%.
What must the

risk-free rate be?