1. You have two stock portfolios with betas of 1.10 (portfolio X) and 1.60 (portfolio Y). Additionally, you know that portfolio X (portfolio Y) has had an average return over the past 20 years of 9.54% (13.24%) and a standard deviation of 28.33% (37.65%). Assume the market risk premium is 6.8% and the risk-free rate is 4.4%.
   1. What is the expected return on portfolio X?
   2. What is the Sharpe ratio of portfolio Y?
   3. The Sharpe ratio for portfolio X is lower than the Sharpe ratio for portfolio Y. Why does this suggest that investors prefer portfolio Y to portfolio X?
   4. If you wanted a portfolio that is a combination of portfolios X and Y to have an expected return of 13.25%, what would be that portfolios beta?