A portfolio is characterized by the following
Stock
s invested Expected Return Beta
X $2,000 15% 2
Y $8,000 12% 1.6
Z $2,000 8% 1.2
a. Calculate the portfolio's expected return.
b. Calculate the beta of the portfolio.
c. If the return on the market is 10% and the risk-free rate is 3%, what is the required return on the portfolio?