$5.$ The expected rates of return and the beta coefficients of the alternatives as supplied by an

independent analyst are as follows:

Security Return Risk $($beta$)$

High Tech $9\mathrm{.}90\%1\mathrm{.}31$

Market $8\mathrm{.}00\%1\mathrm{.}00$

U$.$S$.$ Rubber $7\mathrm{.}30\%0\mathrm{.}88$

T$-$bills $3\mathrm{.}00\%0\mathrm{.}00$

Collections $1\mathrm{.}20\%(0\mathrm{.}50)$

Putting together a $2-$Stock portfolio of $60\%$ High Tech and $40\%$ Collections, $(1)$ what would be

the portfolio beta and the required rate of return with a $3\%$ risk free rate and $6\%$ required rate of return?

$(2)$ What would be the portfolio beta and required rate of return for a $50\%$ High Tech and

$50\%$ U$.$S$.$ Rubber portfolio?

nt: calculate the portfolio beta for both of your portfolios first.