QUESTION 11 Consider three stocks: X, Y and Z. Suppose stock X has a beta of 0.2 stock Y has a beta of 0.9 and stock Z has a beta of 1.6 Furthermore, suppose the risk-free rate is 1.0% and the expected retum of the market is 12%. e) Suppose one builds a portfolio consisting of 15% in stock X, 20% in stock Y and 65% in stock Z. What is the expected return of the portfolio? b) If one were to decrease the portfolio weight of stock Y and increase the portfolio weight of stock Z, what would happen to the expected return of the portfolio (increase, decrease, no change, not enough info)