1. You are invested 26.60% in growth stocks with a beta of 1.72, 23.80% in value stocks with a beta of 0.92, and 49.60% in the market portfolio.
What is the beta of your portfolio?
2. An analyst gathered the following information for a stock and market parameters: stock beta = 0.87; expected return on the Market = 10.00%; expected return on T-bills = 1.50%; current stock Price = $5.10; expected stock price in one year = $14.77; expected dividend payment next year = $2.94.
Calculate the a) Required return for this stock?