You are putting together a portfolio made up of four different stocks. However, you are considering possible weightings:

		Portfolio Weightings
Asset	Beta	First Portfolio	Second Portfolio
A	2.00	15%	35%
B	1.05	15%	35%
C	0.45	35%	15%
D	-1.70	35%	15%

What is the beta on each portfolio?

Which portfolio is riskier?

If the risk-free rate of interest were 3 percent and the market risk premium were 6.5 percent, what rate of return would you expect to earn from each of the portfolios?