QUESTION 4 (12 points) You own a portfolio consisting of the following stocks: Stock Percentage of Beta Expected Return 24% 12% 20% 14% 16% Portfolio 10% 25 15 30 20 1.60 0.60 1.20 0.85 1.00 4 The risk-free rate is 3.5 percent. Also, the expected return on the market portfolio is 9 percent. a. Calculate the expected return of your portfolio. b. Calculate the portfolio beta. c. Given the preceding information, plot the security market line. Plot the stocks from your (2 points) (2 points) (3 points) (3 points) (2 points) portfolio on your graph From your plot in (c), which stocks appear to be your winners and which one appear to be losers? d. Why should you consider your conclusion in part (d) to be less than certain? e