1. What is the beta of a portfolio if the expected return on the portfolio is E(RP ) = 15 %, the risk-free rate is f = 6 %, and the expected return on the market is E(RM) = 12 %? Make the usual CAPM assumptions including that the portfolio alpha is zero

2. As an analyst, you have constructed 2 possible portfolios. Both portfolios have the same beta and expected return, but portfolio 1 was constructed with only technology companies whereas portfolio 2 was constructed using technology, healthcare, energy, consumer products, and metals and mining companies. Should you be impartial to which portfolio you invest in? Explain why or why not