12. Portfolio Beta. Look back at Table 12.1. (L012-2) a. What is the beta of a portfolio that has 40% invested in Alphabet and 60% in McDonald's? b. Would you invest in this portfolio if you had no superior information about the prospects for either stock? Devise an alternative portfolio with the same expected return but less risk. c. Now repeat parts (a) and (b) with a portfolio that has 40% in Alphabet and 60% in Ford. Market Return (%) Month 1 2 3 4 5 6 7 8 Tumblehome Return (%) +1 -1 -2.5 -0.5 +2 -1 +1 +1 +1 +2 +2 -2 -2 +4 +2 -2 -4 9 10 12. Portfolio Beta. Look back at Table 12.1. (L012-2) a. What is the beta of a portfolio that has 40% invested in Alphabet and 60% in McDonald's? b. Would you invest in this portfolio if you had no superior information about the prospects for either stock? Devise an alternative portfolio with the same expected return but less risk. c. Now repeat parts (a) and (b) with a portfolio that has 40% in Alphabet and 60% in Ford. Market Return (%) Month 1 2 3 4 5 6 7 8 Tumblehome Return (%) +1 -1 -2.5 -0.5 +2 -1 +1 +1 +1 +2 +2 -2 -2 +4 +2 -2 -4 9 10