(10 points) Assume that both Apple and Yahoo plot on the SML (security market line). Apple has a beta of 2.6 and an expected return of 21.2%. Yahoo has a beta of 0.90 and an expected return of 9.3%. The expected return on the market portfolio is 10% and the risk-free rate is 3%. If you wish to hold a portfolio consisting of Apple and Yahoo and have a portfolio beta equal to 1.5, what proportion of the portfolio must be in Apple? What is the expected return on the portfolio? Apple Yahoo Market Portfolio Risk-free Asset Beta 2.6 0.9 1.0 0.0 Expected Return 21.2% 9.3% 10.0% 3.0%