6. Rene owns the following portfolio of securities. What is the beta for the portfolio? Beta Percent of Portfolio Company Microsoft 1.82 50% 0.53 30% 0.67 20% GM Dullco 7. What is the equation for the Security Market Line? Define each term. If an asset has a beta of 2.0, what type of return should it realize compared to the market portfolio? 8. Describe the six decision models used in capital budgeting decision-making and briefly evaluate their effectiveness. 9. Cranium, Inc. is considering a four-year project that has an initial outlay or cost of $100,000. The respective future cash inflows from its project for years 1, 2, 3 and 4 are: $50,000, $40,000, $30,000 and $20,000. Will it accept the project if its payback period is 26 months? Explain.