Consider the following information:

$\backslash$table$[[-,$Standard Deviation,Beta$],[$Security C$,20\%,1\mathrm{.}25],[$Security K$,30\%,0\mathrm{.}95]]$

Which security has more systematic risk?

Which security should have the higher risk premium and higher expected return?

$2.$ Suppose Asset A has an expected return of $E(R_A)=20\%$ and a beta of ${}_A=1\mathrm{.}6.$ Furthermore, suppose that the risk$-$free rate is $R_f=8\%.$ Consider a portfolio made up of Asset A and a riskfree asset. If $25\%$ of the portfolio is invested in Asset A$,$ then the expected return is:

The beta on the portfolio, ${}_p,$ would be: