Anna holds a portfolio comprising the following 3 stocks: X, Y and Z. Amount $'000 2,000 1,000 500 (a) (b) (c) (d) Investment Security X Security Y Security Z Determine the expected return of security X. Calculate the return of Anna's portfolio. Beta 1.3 Calculate the beta of Anna's portfolio. P 0.5714 1.00.2857 0 0.1420 Expected Return 10% 2% (4 marks) (4 marks) (4 marks) To reduce the systematic risk of the portfolio, Anna is considering 3 securities to add to the portfolio. Security A has a beta of 0, security B has a beta of 0.5 and Security C has a beta of -0.3. Discuss which security will be most effective in reducing the portfolio's systematic risk? How would portfolio expected return change (higher or lower) if you add this security? (8 marks)