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The expected market return is 006 and the risk free rate is

1. CAPM Calculations: Stock A has beta of 0.90. Stock B has beta of 1.50. The expected market return is 0.06 and the risk free rate is 0.02. Portfolio P has 25% invested in stock A and 75% invested in stock B

a. What is the beta of the portfolio?

b. What is the market risk premium?

c. What is the required rate of return for portfolio P?

d. What is the portfolio's risk premium?

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Finance Basics: The expected market return is 006 and the risk free rate is

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