Question 1. A stock has a beta of 1.24. The expected return on the market is 11.5% and the risk free rate is 3.4%. What is the expected rate of return on the stock?
Question 2. You own a portfolio that has $3,400 invested in Stock A and $4100 invested in stock B. If the expected returns on these stocks are 9.5% and 15.2% respectively, what is the expected return on the portfolio?