(d) If your investment portfolios beta is 0.06, the risk-free interest rate is 3.5%, and the market risk premium is 6%, what is the portfolios required rate of return? (2 marks)

(e) What should the beta of the investment portfolio be, if you wish to invest in it? Explain briefly. (3 marks)

The table below provides the possible returns for two securities - Zamrud and Zaitun: Scenario 1 II colo Icol Probability 0.6 0.4 Zamrud Zaitun 4% 15% 12% -6%