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(Security market line) You are considering the construction of a portfolo comprised of equal investments in each of four different stocks. The belas for each

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(Security market line) You are considering the construction of a portfolo comprised of equal investments in each of four different stocks. The belas for each stock are found below. Asset B D 2.50 1.00 0.50 - 150 2. 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 portfolo? c. How would a 25 percent decrease in the expected return on the market impact the expected return on each asset? d. 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? The portfolio beta to your propered inventment portfolio Pound to three decimal places) b. A 25% increase in the expected return on the market will cause the expected retum of your portfolio te 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 retum on each asset Asset A would by I (Select from the drop down menu and round the war to two decimal places) Asset would by Select from the drop-down menu and round the answer to two decimal places) Asset C would (Select from the drop-down menu and round the war to two decimal places) Asset would by Select to the drop down menu and round the numer to two decimal places d. you we interested in decreasing the beta of your portfolio by changing your portfolio allocation in to stocks, which stock would you decrease and which would you increase? WHY? (Select the best choice below) OA You should increases and decrease because bota is close to and beta is the closest to zero OB. You should brease asset and decrease use Abecause it's bet negative and has the Night be OC. You should increases and decreases begative and has the highest beta OD. You should decreases and increase because it's bet negative and has the highest beta

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