30.You have a $58,000 portfolio consisting of Intel, GE, and Con Edison. You put $23,200 in Intel, $15,200 in GE, and the rest in Con Edison. Intel, GE, and Con Edison have betas of 1.3, 1, and .8, respectively. What is your portfolio beta?

29.If the simple CAPM is valid and all portfolios are priced correctly, which of the situations below is possible? Consider each situation independently, and assume the risk-free rate is 5%.

A)

Portfolio	Expected Return			Beta
A		10	%		1.0
Market		10	%		1.0

B)

Portfolio	Expected Return			Standard Deviation
A		13	%		10	%
Market		8	%		18	%

C)

Portfolio	Expected Return			Beta
A		13	%		1.0
Market		8	%		1.0

D)

Portfolio	Expected Return			Beta
A		16.0	%		2.2
Market		10	%		1.0

Option A

Option C

Option D

Option B