1) Explain the difference between systematic and unsystematic risk? Which portfolio has the least unsystematic risk and why? a-500 Energy Stocks a- 500 Energy Stocks b-50 Stocks (5 each from ten different sectors) c-500 Gold Bars ( Like the ones they steal in Die Hard with a Vengeance) 2) Ichabod Corporations' common stock has a beta of 1.2. The risk free rate is 4% and the expected return on the market is 9%. Using the Capital Asset Pricing Model find the stock's expected return. 3) You own a stock portfolio that invests in 4 stocks with the following weights and betas. Using the data in the table below what is the portfolio beta? Stock Q RST Weight 0.25 0.15 0.40 0.20 Stock W X Y 4) Using the data in the table below, calculate the expected return of the portfolio? Beta 1.15 0.86 1.05 0.95 Price $25 $35 $12 $52 # of Shares 400 250 600 125 Expected Return 14% 15% 20% 8%