Question 3 You have a portfolio which consists of investments in the stocks of three different technology companies. The breakdown of your portfolio is as follows: Stock Portfolio weighting B A 0.40 1.85 B 0.35 0.76 0.25 ? The of the portfolio is 1.50. (a) Calculate the of stock C. (1 mark) If the yield on treasury bills is 2.5% and the expected return on the market portfolio is 9%: (b) Using the CAPM: 1) Calculate the expected rate of return on stock A. II) Calculate the expected rate of return on stock B. (2 marks) (C) Using your answers to part (b) explain difference between aggressive and defensive stocks (4 marks) You sell your stocks in the technology companies and reinvest half of the proceeds into stocks of a road haulage company. You plan to invest the remaining proceeds into the stock of one other company