A. The portfolio beta for your proposed investment porfolio is (round to 3 decimal places)

B. A 25% increase in the expected return on the market will cause the expected return of your portfolio to increase or decrease by what % (round answer to 2 decimal places)

C. A 25% decrease in the expected return on the market will have the following impact on the expected return on each asset:

Asset A would increase or decrease by what % (round all answers to 2 decimal places

Asset B would increase or decrease by what %

Asset C would increase or decrease by what %

Asset D would increase or decrease by what %

D. If you are interested in decreasing the beta of your portfolio by changing your portfolio allocation in 2 stocks, which stock would you decrease and which would you increase? Select best choice:

a. You should increase A and decrease D because D's beta is negative and A has the highest beta

b. You should increase B and decrease C because B's beta is close to 1 and C's beta is closest to 0

c. You should decrease D and increase A because D's beta is negative and A has highest beta

d. You should increase D and decrease A because D's beta is negative and A has the highest beta

(Security market line) You are considering the construction of a portfolio comprised of equal investments in each of four different socks. The beat for each stock found below Asset Beta A 230 B 0.90 0 60 D 140 ( Con the order to COD contentor) a. What is the poitfoliobeta for your proposed investment portfolio? b. How would a 25 percent increase in the expected return on the market impact the expected return of your portfolio c. How would a 25 percent decrease in the Bxpected return on the market impact the expected on each? d. If you are interested in decreasing the beta of your portfolio by changing your porto allocation into stock which stock would you decusand which would you do? Why