In this module, you will learn about identifying the volatility of stocks. The beta is used to determine the volatility of a stock. You will also learn about systematic risks, unsystematic risks, and risk-free rate of return. With this knowledge, make sure to solve the problems provided in the assignment details and rubric. Your answers should be in paragraph format.

Please solve the following problems:

1. You own a portfolio consisting of the stocks below:

Stock or Security	Percentage of Portfolio	Beta	Expected Return
1	20%	1.00	12%
2	30%	0.85	8%
3	15%	1.20	12%
4	25%	0.60	7%
5	10%	1.60	16%

The risk-free rate is 3%. Also, the expected return on the market portfolio is 11%.

a. Calculate the expected return of your (Hint: The expected return of a portfolio equals the weighted average of the individual stocks expected returns, where the weights are the percentage invested in each stock.)

b. Calculate the portfolio