You are building a portfolio made up of four different stocks, however you are considering two possible weightings

		portfolio weights
Asset	Beta	First Portfolio	Second Portfolio
A	2.20	8%	42%
B	1.05	8%	42%
C	0,60	42%	8%
D	-1.70	42%	8%

1. What is the beta of each portfolio?

2. Which portfolio is riskier?

3. If the risk-free interest rate were 5% and the market risk premium were 6%, what is the rate of return on the first portfolio?

If the risk-free interest rate were 5% and the market risk premium were 6%, what is the rate of return on the second portfolio?