2. Suppose Betas Position had been 99% of equity funds invested in the index fund and 1% in the individual stock. Calculate the variability of this portfolio using each stock. How does each stock affect the variability of the equity investment, and which stock is riskiest?

3. Make a Portfolio with the weights of your choosing, you can use two or all 3 investment. Does your risk decreases? How about your return? Explain the reasoning behind your choosing these weights.

4. Calculate the beta for each stock. How does this relate to the situation described in Question #2?

5. What is the required rate of return for each stock (CAPM)? Explain the number and put it into context?