1.(beta of a portfolio) ABC transport has a beta of 1.3 while central gas and power (CGP) has a beta of .70. what is the beta of a portfolio of these two securities if the amount of each is (a) 20% ABC 80% CGP (b)40% ABC 60% CGP (c)60% ABC 40%CGP (d)80% ABC 20%CGP

2. (beta) ABC transport has a BETA of 1.3 while Central gas and power has a beta of .70

(a) which stock is aggressive?

(b) which stock is defensive?

(c) if the market rose by 20%, what would happen to the value of each on average

(d) if the market fell by 10%, what would happen to the value of each on average?