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

		Portfolio Weightings
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 on each portfolio? 2. which portfolio is riskier?

a. the first portfilio because the beta is larger

b. the second portfolio because the beta is smaller

c. the second portfolio because the beta is larger

d. the first portfolio because th beta is smaller

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