20 pts 1)Suppose you hold a diversified portfolio consisting of a $6,000 investment in f 40 different common stocks. The portfolio beta is equal to 1.6. Now, u have decided to sell one of the stocks in your portfolio with a beta suppose yo equal to 1.2 for $6,000 and to use these proceeds to buy another stock for your portfolio. Assume the new stock's beta is 1.5. a) Calculate your portfolio's new beta. b) Calculate your portfolio's new beta if you decided to use the proceeds of the sell to buy 2 stocks if the beta's of the stocks are 1.9 and 1.3, respectively You are to place 2/3 of the proceeds from the sell in the stock with beta equal to 1.9 and 1/3 of the proceeds in the stock with beta of 1.3. 40 stocks x 1. 1Opts. 2)Find the rate of return on a stock that has a market rate return equal to 11%, if the risk- free rate is 7% and the beta of the stock is 1-3. 15 pts. 3) Define and discuss the yield curve in detail. How would you as an analysis for the Standard and Poor's Corporation make a decision to label a company's bonds as AAA versus a poorer rating. Also, use a graph. (Use the back of this page.) 15 pts. 4) Suppose you are the money manager of an $13 million investment fund. The fund consists of 5 stocks with the following investments and betas: Stock Investment Beta IBM GE APPL DE DNA JPM Find the rate of return on the above fund if the risk-free rate is 7% and the market rate of retum is 13%. $7,000,000 $1,600,000 $ 1,500,000 $2,000,000 S 400,000 $1,500.000 1,4 0.66 -2.00 2.70 0.0 3.0