Suppose you are the money manager of a P4.0 investment portfolio consists of stocks with the following investment and betas: Stock Beta S 1.5 T (0.50) A 1.25 R 0.75 If the market required return is 14% and the risk free rate is 6%, a) What is the portfolio beta? b) What is the portfolio required rate of return?

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A: The index portfolio M has E(RM ) = 6%, σM = 18%.An individual asset i has an estimate of βi = 1.1…

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A: Excel Spreadsheet: Excel Workings:

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A: Here,Risk Free Rate is 4%AssetE(r)Beta of Factor 1Beta of Factor 2115%1.51212%`10.8

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A: Information Provided: Risk free rate of return = 2% Market return = 7% Stock B's return = 11%

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A:

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A: Since you have posted multiple questions, we are solving the first question for you. Kindly repost…

Q: Using the spreadsheet answer question (c) please

A: Given,  Volatility of the market = 10% Expected Return = 8% Risk-free rate = 3%

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A: Risk free rate (Rf) = 0.05Market return (Rm) = 0.12Market standard deviation (Sm) = 0.20

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A: ProbabilityReturn on stock CReturn on stock D0.307%-9%0.5011%14%0.20-16%26%Proportion invested25%75%