Question 1: Combining portfolios [6pt] An investor has a choice of three portfolios with the following expected returns and betas: Portfolio Expected Return Beta Portfolio 1 12% 0.5 Portfolio 2 16% 1.1 Portfolio 3 20% 2 Use the above information to answer the following questions. (a) (1pt) If the investor combines portfolios 1 and 2 to give the same expected return as portfolio 3, what is the beta of the combined portfolio? Is it higher or lower than the beta of portfolio 3? (b) (Ipt) If the investor combines portfolios 1 and 2 to have the same beta as portfolio 3, what is the expected return of the combined portfolio? Is it higher or lower than the expected return of portfolio 3