(Portfollo beta and CAPM) You are puting together a portholo made up of lour diffecent alocks. Howner, you are considheing two posciblo wnightings atA a. What is the beta os each portiolo? b. Which portiobo is riskior? c. If the fisk-tiee rate of intorest whit 4.5 percent and the market risk premium were fi percent, what rate of roturn would you expect to eam from each of the portillios? a. The buta on the first portiolio is (Round to three decimal places.) The beta on the secoend pertiolls it (Round to three decimal places) b. Which portiolio is risker? (Ssect the best choice below.) A. The fint periolio beciuse the bota is smallor B. The firat portiotio becausis the beta is larger. C. The secand pertillio because the beta is larger. D. The second portfalio bocause the beta is smasey c. If the rick thee rale of interest were 45% and the markbt risk grecilum were 5% then the rate of retum on the frst portiolio is expected to be H the isk free tate of interest were 4.5% and the market risk premium were 6%, then the rate of retum on the second portfolo is eapected to be 16. (Round to two decimat placma.) Portfolio Weightings \begin{tabular}{|cccc|} \hline Asset & Beta & First Portfolio & Second Portfolio \\ A & 2.10 & 12% & 38% \\ B & 0.95 & 12% & 38% \\ C & 0.45 & 38% & 12% \\ D & -1.40 & 38% & 12% \\ \hline \end{tabular} (Click on the icon Dh in order to copy its contents into a spreadsheet)