A stock has a beta of 169 the expected return on the market


Question: 1) A stock has a beta of 1.69, the expected return on the market is 0.08, and the risk-free rate is 0.05. What must the expected return on this stock be? Enter the answer with 4 decimals (e.g. 0.1234).

2) You own a portfolio that has $3200 invested in Stock A and $1300 invested in Stock B. If the expected returns on these stocks are 0.20 and 0.21, respectively, what is the expected return on the portfolio?

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Finance Basics: A stock has a beta of 169 the expected return on the market
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