ABC Ltd has been investing surplus funds in small portfolio of equity shares in the past few years. Details of the portfolio are as below: Company No. of shares "000" Beta Share price Dividend yield Expected return % A 170 1.27 37.5 5.6 15 B 150 1.53 42.5 3.5 14 C 100 1.01 25 4.2 17 D 80 0.95 45.0 6.2 11.9 E 130 0.82 35.0 4.8 9.9 The expected return on the market portfolio is 12% while the yield on the treasury bills is 5% Required: a) Using appropriate computations evaluate whether the above portfolio is more or less risky than that of the market portfolio b) Give recommendations on how the above portfolio should be charged giving the justifications for your proposal