Maurie invested $17,000 in stock X, Y, Z. The amounts, expected returns, and the beta coefficient of each of the stock is given below:

Stock X: $4,200; Expected returns: 18.5%; and Beta: 1.03

Stock Y: $5,100; Expected returns: 15.6%; and Beta: 0.92

Stock Z: $6,800; Expected returns: 21.0%; and Beta: 0.98

a) Calculate the Expected returns of Maurie’s portfolio. (3 points)

b) Of the 3 stocks which one has the highest systematic risk compared to the overall market and explain why? (1 point)

c) Calculate the Portfolio Beta. (2 points)

d) Interpret the systematic risk of the portfolio based on the Portfolio Beta. (1 point)