Determine what is the expected return of the stock

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Problem 1: Suppose you invest 64%, 21%, and 15% of your wealth into a stock, the market, and a risk-free asset, respectively. The beta of the stock is 1. What is the beta of the portfolio? Enter your answer rounded to 3 DECIMAL PLACES.

Problem 2: Given a risk-free rate of 5%, a market return of 10.4%, and a beta of 1.2, what is the expected return of the stock? Enter your answer as a percentage. Do not put the percentage sign into your answer.

Reference no: EM132928061

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