6-17(Security market line)
A.Determine the expected return and beta for the following portfolio:
Stock	% of Portfolio W	Beta R	Expected Return
1	0.4	1	0.12
2	0.25	0.75	0.11
3	0.35	1.3	0.15
	1	3.05	0.38
Expected Return Of Portfolio
B.Given the foregoing information,draw the security market line and show where the securities and portfolio fit on the grap.risk rate 2%
Expected return on the market portfolio is 8%. How would you interpret these findings.