(Portfolio beta and CAPM)You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings

Portfolio Weightings

Asset	Beta	First Portfolio	Second Portfolio
A	2.20	8%	42%
B	0.90	8%	42%
C	0.60	42%	8%
D	-1.80	42%	8%

a.The beta on the first portfolio is ____________ (Round to three decimal places.)

The beta on the second portfolio is ____________ . (Round to three decimal places.)

b.Which portfolio is riskier?(Select the best choice below.)

A. The second portfolio because the beta is larger.

B The first portfolio because the beta is larger.

C. The second portfolio because the beta is smaller.

D. The first portfolio because the beta is smaller.

c.If the risk-free rate of interest were 3% and the market risk premium were 6.5%, then the rate of return on the first portfolio is expected to be ___________ %. (Round to two decimal places.)