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QUESTION 5 Given are the following two stocks A and B: Portfolio Expected Return Beta Weight of Portfolio A 0.12 1.4 0.55 B 0.14 0.9

QUESTION 5 Given are the following two stocks A and B: Portfolio Expected Return Beta Weight of Portfolio A 0.12 1.4 0.55 B 0.14 0.9 0.45 The expected market rate of return is 0.09 and the risk-free rate is 0.04. (a) (2 pts) What is the beta of your portfolio? (b) (2 pts) Why is this not the optimal portfolio

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