Calculate Portfolio Beta on the SML Need answers ASAP Please?

Jaycee Martinez

New member
I need help with these 2 questions badly because I have things due in a few hours. Please help if you can.... Thanks!!!!

Question #1:

Jerry's portfolio is invested equally in five stocks, and each has a beta of .20. Required return is 9.4%, and risk free rate is 5%, and market premium is 4%. What is the portfolio's beta assuming it is on the SML.

Question #2:

The last stock added to this portfolio was Lauren Clothing, which has a beta of .40. What was the portfolio's beta before Lauren's stock was added?
 
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