1. The betas of four stocks G, H, I, and J are .45, 0.8, 1.15, and 1.6 respectively. What is the beta of a portfolio with the following weights in each asset?

	Weight in Stock G	Weight in Stock H	Weight in Stock I	Weight in Stock J
Portfolio 1	25%	25%	25%	25%
Portfolio 2	30%	40%	20%	10%
Portfolio 3	10%	20%	40%	30%

2. Use the four assets from the previous problem in the same three portfolios. What are the expected returns of each of the four individual assets and the three portfolios if the current SML is plotting with an intercept of 4% (risk-free rate) and a market premium of 10% (slope of the line)?