An investor currently holds the following portfolio of 4 stocks, each having equal weight:

Stock	Expected Return (rs)	Beta
A	14.0%	1.5
B	8.0%	0.75
C	6.0%	0.5
D	3.6%	0.2

portfolios expected return = 7.90%

beta risk = 0.74

beta of stock E= 2.05

e. According to the CAPM, what is Es expected return if the risk-free rate is 2% and the market risk premium (RP_M) is 8%?

f. What will be the expected return of the portfolio with E included?