[18 Marks] Question 6 Suppose that a portfolio consists of the following shares: Amount Share R Beta Chevron 20,000 0.70 General Electric 40,000 1.30 Whirlpool 40,000 1.10 The risk-free rate (re) is 5% and the market risk premium (rm - r) is 8.8%. Required: 6.1. Determine the beta for the portfolio. (4) 6.2. Determine how many General Electric shares one must sell and reinvest in Chevron shares to reduce the beta on the portfolio to 1.00. 6.3. Determine the expected return on the portfolio in Parts 6.1 and 6.2. (7) 5