(Portfolio bets and secunty market line) You own a portfolio consisting of the following stocks The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 11 percent. Calculate the expected retum of your portfolio. (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) c. Given the foregoing information, plot the security market line. Plot the stocks from your portfolio on your graph d. From your plot in part (c) which stocks appear to be your winners and which ones appear to be losers? Why should you consider your conclusion in part (d) to be less than certain? araw the une Data Table Security Market Line X STOCK 2 Expected return () PERCENTAGE OF PORTFOLIO 20% 30% 15% 25% 10% BETA 100 0.85 120 0.60 1 60 EXPECTED RETURN 12% 8% 12% 7% 16% 4 5 Print Done 15 Beta