Using CAPM & Diversification

Lo4-14  A stock has an expected return of 13.6 percent, the risk-free rate is 3.7 percent, and the market risk premium is 7.1 percent. What must the beta of this stock be?

L02-11.6 Diversification true or false the most important characteristic in determining the expected return of a well-diversified portfolio is the variances of the individual assets in the portfolio. Explain.

Complete soultions and Explanation