You Invest in 200 Shares of Canso Corporation, Which Sells

You invest in 200 shares of Canso Corporation, which sells for $20 a share and has an
expected return of 12% with a standard deviation of 3% and a beta of 1.1, and 600
shares of Darnit Corporation, which sells for $10 a share and has an expected return of
18% with a standard deviation of 5% and a beta of 1.3.
a. What is the expected return of your portfolio?
b. What is the beta of your portfolio?
c. If the relevant risk-free rate is 5% and the equity premium is 8.5%, what is the
minimum rate of return you should require on your investment in this portfolio?
d. Is your portfolio overpriced, underpriced, or correctly priced? Explain.