A stock that you are interested in has a beta of 5. The total value of your portfolio is $200,000 and you decide to invest another $50,000 in this stock. a. The current beta of your portfolio is 2.5....

A stock that you are interested in has a beta of 5. The total value of your portfolio
is $200,000 and you decide to invest another $50,000 in this stock.
a. The current beta of your portfolio is 2.5. What will be the beta of your
new portfolio?
b. The risk-free rate is 6% and the expected return on the market is 15%.
What is the expected return on your new portfolio?