Q1Assume that your portfolio has three stocks. You have $300,000 invested in stock A that is returning 17%, $300, 000 invested in stock B that is returning 16%, and $400,000 invested in stock C that is returning 18%. What is the expected return of your portfolio?

Q2:A beta coefficient for a stock of 0.8 implies

A. the stock is more risky than the market because an 1% decrease in the stock return

will cause the market return to decrease by 0.8%

B. the stock is more risky than the market because an 1% decrease on the market return will cause the return on this stock to decrease by 0.8%

C. the stock is less risky than the market because an 1% decrease in the stock return will cause the market return to decrease by 0.8%

D. the stock is less risky than the market because an 1% decrease in the market return

will cause the return on this stock to decrease by 0.8%