Equity investment EXPECTED RETURN E$($r$)$ Beta

Acme Company $6\mathrm{.}0\%0\mathrm{.}85\%$

Smith Corp. $8\mathrm{.}5\%1\mathrm{.}05$

Jones Inc $12\mathrm{.}0\%1\mathrm{.}80$

$2.$ You wish to show Sandy how various investment combinations impact her risk and return results $($as represented by each portfolio's expected return and beta variable$).$ Specifically, you create seven $(7)$ different portfolios consisting of:

a$.$ A portfolio with a $100\%$ allocation to each identified stock and the risk$-$free asset $($i$.$e$.,$ this represents portfolios $1-4$ of the $7$ hypothetical portfolios$)$

b$.$ Portfolio $5$ is comprised of an equal allocation to each stock and the risk$-$free asset.

c$.$ Portfolio $6$ is comprised of an equal allocation to just the three identified stocks.

d$.$ Portfolio $7$ is comprised of $50\%$ invested in Smith Corp. and $50\%$ invested in the risk free asset.