1. Suppose you are the money manager of a P4.0 investment portfolio consists of four stocks with the following investment and betas:

Stock	Beta
A - P 400K	1.5
B - 600K	(0.50)
C - 1M	1.25
D - 2M	0.75

If the market required return is 14% and the risk free rate is 6%, What is a) What is the portfolio beta? b) What is the portfolio required rate of return?

2. Mrs. Plankton deposited 90k as a gift to her favorite niece, Patricia who will graduate two years from now in the Accountancy program. The interest rate is 12% compounded every 4 months. What is the total value of the gift to be received by the niece when she graduates?