# Question: You are putting together a portfolio made up of four

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

a. What is the beta on each portfolio?

b. Which portfolio is riskier?

c. If the risk-free rate of interest were 4 percent and the market risk premium were 5 percent, what rate of return would you expect to earn from each of theportfolios?

a. What is the beta on each portfolio?

b. Which portfolio is riskier?

c. If the risk-free rate of interest were 4 percent and the market risk premium were 5 percent, what rate of return would you expect to earn from each of theportfolios?

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