Question 4. (5 points) The risk-free rate is 2.99% and the expected return on the market portfolio is 7.5%. You have decided to invest in a portfolio of Apple, General Dynamics, Walmart, and Freeport-McMoran. The beta of Apple is 1.21, General Dynamics is 0.76, Walmart is 0.12, and Freeport-McMoran is 2.49. Assume the CAPM holds.

(a) What is the expected return of each of the companies?

(b) If you invest equally across all four companies, what will be the expected return on your portfolio?