An individual plans to invest in Stock A and/or Stock B. The expected returns are 9% and 10% for A and B, respectively. The betas are 0.95 and 1.25 for stocks A and B respectively.
1. Find the expected return for the portfolio if she invests 75% of her funds in Stock A.
2. Find the beta for portfolio if she invest 75% of her funds in Stock A
3. Suppose the investor want sto construct a portfoilio with expected return equal to 9.5%
3A. What are the portfolio weights for this portfolio?
3B. What is the beta for the portfolio?