Suppose you are a money manager of a $5 million investment fund. The fund is invested in four funds with the following investments and betas:

Stock Shares Price Per Share Beta

A 100,000 $10 1.50

B 100,000 $20 0.85

C 75,000 $20 1.00

D 20,000 $25 1.60

Use stock A and B i to create one portfolio with a beta of 1.10. A second portfolio with a beta of 1.80. For each such portfolio, show the weight, how will you allocate the portfolio $5 million, and how many shares will be purchased or shorted.