6. Write in the appropriate box (4 marks) Returns for Paltel's Returns for Padico's Stock Stock Aggressive stock Higher firm specific risk Higher total risk In figure I below, Li represents the regression equation for Defensive stock Less systematic risk The market returns explain a greater fraction of return variability Higher alpha + Figure 1 Security Return (R) Market Return (R) Suppose that you were to construct a portfolio with proportions as follows: Paltel Stock 30%, Padico Stock 50%, and T-bill 20%. 7. Compute the beta of the portfolio? (1 mark) (1 mark) 8. Compute the non-systematic risk of the portfolio (1 mark) 9. Compute the standard deviation of the portfolio 5 6. Write in the appropriate box (4 marks) Returns for Paltel's Returns for Padico's Stock Stock Aggressive stock Higher firm specific risk Higher total risk In figure I below, Li represents the regression equation for Defensive stock Less systematic risk The market returns explain a greater fraction of return variability Higher alpha + Figure 1 Security Return (R) Market Return (R) Suppose that you were to construct a portfolio with proportions as follows: Paltel Stock 30%, Padico Stock 50%, and T-bill 20%. 7. Compute the beta of the portfolio? (1 mark) (1 mark) 8. Compute the non-systematic risk of the portfolio (1 mark) 9. Compute the standard deviation of the portfolio 5