Use the following information to answer the next three questions: Stock ABCD А 0.2 1.0 30,000 1.8 25,000 1.6 Risk-free r

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Use the following information to answer the next three questions: Stock ABCD А 0.2 1.0 30,000 1.8 25,000 1.6 Risk-free rate is 3% and the market risk premium is 8% What is the required return for this portfolio? с 12.5% a. b. 12.2% c. 11.6% d. 14.2% Amount a. 12.6% b. 10.8% 25,000 20,000 C. 13.4% d. 11.6% If $25,000 of stock E with a beta of 0.6 is added, what will be the new required return for the portfolio? Beta If stock E with it's beta of 0.6 has an expected return of 8.2% should it be added to the portfolio? a. yes b. no C. not enough information to answer