Find what is the required return of the portfolio

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Reference no: EM132588118

You hold the positions in the table below.

                                 Assumed Price                 Shares                   Assumed Beta

Amazon.com               $40.00                        106                           4.35

Family Dollar Stores      30.00                             193                         1.40

McKesson Corp              75.00                              150                      0.57

Schering-Plough Corp       25.50                              354                       1.25

Question 1: What is the beta of your portfolio? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Question 2: If you expect the market to earn 15.90 percent and the risk-free rate is 5.50 percent, what is the required return of the portfolio? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Reference no: EM132588118

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