6. Asset A has an expected return of 12 percent and a beta of 1.6. What is the market's risk premium if the risk-free rate is 4 percent? a. 4.6 percent b. 5 percent c. 5.5 percent d. 5.9 percent 7. Consider the previous example with the following four securities. Security Weight Beta .1 1.5 KO .2 0.8 INTC 3 1.0 BP .4 1.3 What is the portfolio beta? b. 1.06 a. .92 c. 1.13 d. 1.22