3. The following information is available about stocks you are thinking of buying: Stock Beta Standard Deviation A .40 1.2 .30 1.3 .50 (a) Create a portfolio that has at least three different stocks that has Portfolio Beta = 1. Show the details of the portfolio. (6 points) (b) Using the stock details above, answer each of the following as (T)rue or (F)alse: _i If you form a portfolio with all 4 stocks, the portfolio will have a Beta of 1.3 because you cannot cancel market risk ii If you own only one stock, your Expected Return will depend on the standard deviation of the stock you chose iii The stocks with low market risk have low betas (c) How is it possible that Stock C has a higher standard deviation than Stock B but has a lower beta? Explain. (6 points)