An investor is forming a portfolio by investing $50,000 in stock A which has a beta of 2.40, and $50,000 in stock B which has a beta of 0.60. The return on the market is equal to 8% and treasure bonds have a yield of 3% (rRF). What’s the portfolio beta?     0.60     1.30     1.50     1.80   Using the information in Question 41, calculate the required rate of return on the investor’s portfolio     11.0%     15.0%     12.0%     10.5%

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A:

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