An investor holds a portfolio consisting of three stocks. The weights, expected returns, and betas of the stocks are as follows:
•Stock A: Weight = 40%, Expected Return = 9%, Beta = 1.2
•Stock B: Weight = 30%, Expected Return = 11%, Beta = 1.5
•Stock C: Weight = 30%, Expected Return = 7%, Beta = 0.8 Calculate the portfolio's expected return and beta. Discuss the implications of the portfolio's beta on its risk.