Question 1a: Is it possible for a risky asset to have a beta of zero? Explain why or why not.

Question 1b: Your client, Smith, owns a portfolio that has $3,140 invested in Aardvark common stock and $4,300 invested in Bonobo common stock. The expected return on Aardvark common stock is 9% annually and on Bonobo common stock is 14% annually. What is the expected return on Smith's portfolio?

Question 1c: Another client, Walker, owns a portfolio invested 15% in Qantas stock (beta = 0.78), 25% in Rooster stock (beta = .87), 40% in Salamander stock (beta = 1.13), and 20% in Tiger stock (beta = 1.45). What is the portfolio beta?