A growth portfolio is created by investing $11,500 in Fairlane stock with a beta of 1.13, $10,500 in Leaside stock with a beta of 1.35 and 12,000 in Seaboard stock with a beta of 1.77. In addition to those individual stocks , the portfolio also contains $6,500 invested in an index fund which is a good proxy for the market as a whole and $9,500 invested in a bond fund which serves as a good proxy for the risk-free security. If the expected return on the index fund is 11% and the risk-free security yields 5%,

a. What is the beta of the portfolio? (3 marks).

b. What is the expected return of the portfolio.? (3 marks).