What is the beta of cher portfolio

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Question: 1. Cher owns a portfolio that has a value of 67,200 dollars and consists of 3 stocks. She has 23,400 dollars worth of stock A, which has a beta of 0.3; she has 2,600 shares of stock B, which has a share price of 6 dollars and a beta of 0.66; and she has some stock C, which has a beta of 1.42. What is the beta of Cher's portfolio? Round your answer to 2 decimal places (for example, 2.89, 0.70, or 1.00).

2. If the expected return on the market is 14.46 percent, the inflation rate is 1.82 percent, the risk-free rate is 5.47 percent, and Fairfax Paint common stock has a beta of 0.3, then what is the expected return for Fairfax Paint stock? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.

Reference no: EM131924978

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