1. The following common stocks are available for investment:
2. If you invest 20 percent of your funds in each of the first four securities, and 10 per- cent in each of the last two, what is the beta of your portfolio?
3. If the risk-free rate is 8 percent and the expected return on the market portfolio is 14 percent, what will be the portfolio's expected return?

COMMON STOCK (TICKER SYMBOL) BETA Nanyang Business Systems (NBS) 1.40 Yunnan Garden Supply, Inc. (YUWHO) 0.80 Bird Nest Soups Company (SLURP) 0.60 Wacho.com! (WACHO) 1.80 Park City Cola Company (BURP) 1.05 Oldies Records, Ltd. (SHABOOM) 0.90