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Question content area top Part 1 (Portfolio beta and CAPM)You are putting together a portfolio made up of four different stocks. However, you are considering

Question content area top Part 1 (Portfolio beta and CAPM)You are putting together a portfolio made up of four different stocks. However, you are considering two possible weightings:LOADING.... a.What is the beta on each portfolio? b.Which portfolio is riskier? c.If the risk-free rate of interest were percent and the market risk premium were percent, what rate of return would you expect to earn from each of the portfolios? Question content area bottom Part 1 a.The beta on the first portfolio is enter your response here. (Round to three decimal places.) Part 2 The beta on the second portfolio is enter your response here. (Round to three decimal places.) Part 3 b.Which portfolio is riskier?(Select the best choice below.) A. The first portfolio because the beta is larger. B. The second portfolio because the beta is smaller. C. The second portfolio because the beta is larger. D. The first portfolio because the beta is smaller. Part 4 c.If the risk-free rate of interest were % and the market risk premium were %, then the rate of return on the first portfolio is expected to be enter your response here%. (Round to two decimal places.) Part 5 If the risk-free rate of interest were % and the market risk premium were %, then the rate of return on the second portfolio is expected to be enter your response here%. (Round to two decimal places.)

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