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(Portfolio beta and security market line) You own a portfolio consisting of the folowing stocks The risk-freo rate is 6 percent. Also, the expectid rekim

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(Portfolio beta and security market line) You own a portfolio consisting of the folowing stocks The risk-freo rate is 6 percent. Also, the expectid rekim art the matket portiotio is 16 poront. a. Calculabe the expectod return of your portiolio. (Hint: The expected return of a portiolio equals the weighted ayerayg of the indivitual stock's axnectiod return, where the weights ate the porcentago invested in each stock.) b. Cilculate the portfolio beta, c. Given the preceding information, plot the security market ine on paper. Plot the stocks from your portiolio on your graph. d. Froen your plot in part c, which slocks appear to be your winnors and which ones appear to be losers? e. Why should you consider your conchusions in part d to be less than certain? a. The expected return of your portfolio is No. (Round to two decirtal places.) Data table (Portfolio beta and security market line) You own a portfolio consisting of the folowing stocks The risk-freo rate is 6 percent. Also, the expectid rekim art the matket portiotio is 16 poront. a. Calculabe the expectod return of your portiolio. (Hint: The expected return of a portiolio equals the weighted ayerayg of the indivitual stock's axnectiod return, where the weights ate the porcentago invested in each stock.) b. Cilculate the portfolio beta, c. Given the preceding information, plot the security market ine on paper. Plot the stocks from your portiolio on your graph. d. Froen your plot in part c, which slocks appear to be your winnors and which ones appear to be losers? e. Why should you consider your conchusions in part d to be less than certain? a. The expected return of your portfolio is No. (Round to two decirtal places.) Data table

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