15.You hold a diversified portfolio consisting of $3,000 investment in the first stock, $3,000 in the second stock and $4,000 in the third stock. The portfolio has a beta of 1.2. If the beta of the first stock is 0.7 and the beta of the second is 0.9, what is the beta of the third stock?

A.1.80B.1.67C.1.50D.1.33E.1.25

16.You hold a diversified portfolio consisting of $1,000 investment in each of 10 different stocks. The portfolio has a beta of 0.8. You have decided to sell one of your stocks that has a beta equal to 1.1 for $1,000. You will purchase $1,000 of a new stock with a beta of 2.5. After these two transactions (sell and buy), what will be the beta of the new portfolio?

A.1.20B.1.10C.0.99D.0.87E.0.94

17.You hold a diversified portfolio consisting of $2,000 investment in each of five different stocks: The first stock has a beta of 0.68, the second stock has beta of 1.56, the third stock has beta of 0.94, the fourth stock has beta of 1.92 and the fifth stock has beta of 1.45.Assume that the market return will be 9.65percent and the risk-free rate is 3.20percent. What is the total risk premium of the portfolio?

A.7.65%B.8.12%C.8.45%D.8.96%E.9.50%