An individual has $35,000 invested in a stock with a beta of 0.8 and another USD 40,000 invested in a stock with a beta of 1.4 if these are the only two investments in her portfolio, Determine her portfolio’s beta?
Clue= Compute the stock’s expected return, standard deviation, & coefficient of variation.
[B]Preferred stock valuation
Fee Founders has perpetual preferred stock outstanding that sells for $60 a share and pays a dividend of USD 5 at the end of each year. Determine the required rate of return?