Please answer parts C and D

Problem 4: Portable alpha Assume that you invest in a portfolio of 5 stocks splitting your money equally between all five. Assume that stocks 1, 2, 5 have beta's of 1.1 each and stocks 3 and 4 have zero betas. Assume that (annual) market return E(RM)-7% and risk free rate is 1% a) What is the beta of your portfolio. What should be the expected return on your portfolio if CAPM holds Assume that expected returns of stocks 1, 2, and 5 are all equal 7.6%, and expected returns on stocks 3 and 4 are 1.5%. b) What are the alpha's of individual stocks and what is the alpha of overall portfolio you are holding. c) Can you make the alpha of overall portfolio you found portable? i.e. how can you achieve a zero beta portfolio with the same alpha you found in b) for the whole portfolio. d) Can you make alpha's of stocks 3 and 4 portable? Problem 4: Portable alpha Assume that you invest in a portfolio of 5 stocks splitting your money equally between all five. Assume that stocks 1, 2, 5 have beta's of 1.1 each and stocks 3 and 4 have zero betas. Assume that (annual) market return E(RM)-7% and risk free rate is 1% a) What is the beta of your portfolio. What should be the expected return on your portfolio if CAPM holds Assume that expected returns of stocks 1, 2, and 5 are all equal 7.6%, and expected returns on stocks 3 and 4 are 1.5%. b) What are the alpha's of individual stocks and what is the alpha of overall portfolio you are holding. c) Can you make the alpha of overall portfolio you found portable? i.e. how can you achieve a zero beta portfolio with the same alpha you found in b) for the whole portfolio. d) Can you make alpha's of stocks 3 and 4 portable