(Portfolio beta and CAPM) You are putting together a portfolio made up of four different stocks. However, you are considering two possibile sightings a. What is the beta on each portfolio c.it ne tik free tate of interest were 35 percent and the market risk premium wore 7 percent, what rate of returi would you expect to can trom each of the portfolos? b. Which portfoliis riker? The beta on me first portfotos ). (Round to three decimal placet.) The beta on the stoon portfolio is Round in the decimal places) . Which portfolio skir? (Select the best choice below) O A. The first portfolio because the beta is larger OB. The second portfolio because the beta is larger OC. The second portfolio because the beta is smaller D. The first portfolio because the betaler The rate of interest were 35 and the market premium were 76, then there of return on the first portfolio is expected to be(Round to wo decimal aces the tree rate of interest were 3,5% and the market rak premium were 7, then the rate of return on the second portfolio in expected to be found to two decimal places ent and the market risk premium were 7 percent, what rate of return would you expect to earn from each of the portfolios? - X d to three Data table ad to three choice bell arger. als larger a is smaller Portfolio Weightings Asset Beta First Portfolio Second Portfolio 2.00 12% 38% 0.95 12% 3895 0.45 38% 1296 D -1.70 38% 12% (Click on the icon in order to copy its contents into a spreadshoot) Oo smaller nd the mari the market Print Done Time Rema