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  3. 5) miranda lambert currently holds the following p

5) Miranda Lambert currently holds the following portfolio: Amount Invested 4,000 shares of...

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Question

Accounting

5) Miranda Lambert currently holds the following portfolio:

Amount

Invested

4,000 shares of STOCK H $8,000 Beta = 1.3

7,500 shares of STOCK I $24,000 Beta = 1.8

12,500 shares of STOCK J $48,000 Beta = 2.2

The beta for the portfolio is

A) 1.99.

B) 1.77.

C) 1.45.

D) 1.27.

6) Snoop Dogg Inc. has a beta equal to 1.8 and a required return of 15% based on the CAPM. If the market risk premium is 7.5%, the risk-free rate of return is

A) 4.1%.

B) 3.4%.

C) 2.0%.

D) 1.5%.

Please provide detail explanation.

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