Connect Only Problem 10-14 Portfolio Beta and Required Return (LG10-3) You hold the positions in the table below. Advanced Micro Devices FedEx Corporation Microsoft Sara Lee Corporation Portfolio beta Required return Price $24.00 168.00 19.00 20.00 % Shares 392 77 140 224 What is the beta of your portfolio? If you expect the market to earn 10.50 percent and the risk-free rate is 6.00 percent, what is the required return of the portfolio? Note: Do not round intermediate calculations and round your final answers to 2 decimal places. Beta 4.88 1.41 1.02 1.51

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Question 7 What is the beta of the following portfolio? Stock Beta 13 10 05 Investment $60 00 S50 D00 9% | 3% O 0.91 O 0.93 O 0.92 O 0.90 O None of the listed iterms is correct A Moving to another question will save this response. MacBook Air esc $ % 2 3 4 Q W R tab

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3. Problem 8.07 (Portfolio Required Return) BA eBook Problem Walk-Through Suppose you are the money manager of a $5.02 million investment fund. The fund consists of four stocks with the following investments and betas: Investment $ 260,000 600,000 1,560,000 2,600,000 с D If the market's required rate of return is 12% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Stock A B Beta 1.50 (0.50) 1.25 0.75

Multiple Choice Portfolio Beta You have a portfolio with a beta of 1.03. What will be the new portfolio beta if you keep 60 percent of your money in the old portfolio and 40 percent in a stock with a beta of 1.63? О ○ 1.00 1.27 ○ 2.66 О 1.33