$($Security market line$)$ You are considering the construction of a portfolio comprised of equal investments in each of four different stocks. The betas for each stock are found below:

$($Click on the icon $.$ in order to copy its contents into a spreadsheet.$)$

a$.$ What is the portfolio beta for your proposed investment portfolio?

b$.$ How would a $25$ percent increase in the expected return on the market impact the expected return of your portfolio?

c$.$ How would a $25$ percent decrease in the expected return on the market impact the expected return on each asset?

d$.$ If you are interested in decreasing the beta of your portfolio by changing your portfolio allocation in two stocks, which stock would you decrease and which would you increase? Why?

a$.$ The portfolio beta for your proposed investment portfolio is $($Round to three decimal places.$)$

b$.$ A$.25\%$ increase in the expected return on the market will cause the expected return of your portfolio to by $.($Select from the drop$-$down menu and round the answer to two decimal places.$)$

c$.$ A$.25\%$ decrease in the expected return on the market will have the following impact on the expected return on each asset:

Asset A would by $\%.($Select from the drop$-$down menu and round the answer to two decimal places.$)$

Asset B would $,$ by $,.($Select from the drop$-$down menu and round the answer to two decimal places.$)$

Asset $C$ would by $\%($Select from the drop$-$down menu and round the answer to two decimal places.$)$

Asset $D$ would $,$ by $\%.($Select from the drop$-$down menu and round the answer to two decimal places.$)$

d$.$ If you are interested in decreasing the beta of your portfolio by changing your portfolio allocation in two stocks, which stock would you decrease and which would you increase? Why? $($Select the best choice below.$)$

A$.$ You should increase asset A and decrease asset $D$ because asset $D\text{'}$s beta is negative and asset A has the highest beta.

B$.$ You should increase asset $B$ and decrease asset $C$ because asset $B\text{'}$ beta is close to $1$ and asset $C\text{'}$s beta is the closest to zero.

C$.$ You should decrease asset $D$ and increase asset $A.$ because asset $D\text{'}$s beta is negative and asset A has the highest beta.

D$.$ You should increase asset $D$ and decrease asset A because asset $D\text{'}$s beta is negative and asset A has the highest beta.