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You are putting together a portfolio made up of four different stocks

Finance

You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings: 
a) What is the beta on each portfolio?

b) Which portfolio is riskier?

c) If the risk-free rate of interest were 4.5 percent and the market risk premium were 7.5 percent, what rate of return would you expect to earn from each of the portfolios? 

                                                                                  Portfolio Weightings

Asset                              Beta                     First portfolio                      Second portfolio

A                                     2.00                          15%                                    35%

B                                     0.90                          15%                                    35%        

C                                     0.40                           35%                                   15%

D                                     -1.30                          35%                                   15%

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