Question 2 You are the manager of a portfolio of stocks as shown below. Stock A B C Invested amount $2m $3m $5m Beta 1.6 012 The expected return on the market is 10%. The risk free rate is 4%. (a) Calculate the beta of stock C if the portfolio has a beta that is similar to the market. (5 marks) (6) Without calculating, infer the expected return of the portfolio. 6 marks) Propose one (1) possible method to rebalance the portfolio if you expect the stock markets to fall in the next 6 months. Discuss your rationale. marks)