Question: Please explain this question step by step, including the formula used and all the explanations, theories, thanks A portfolio is constructed from 4 shares as

Please explain this question step by step, including the formula used and all the explanations, theories, thanks

A portfolio is constructed from 4 shares as follows: Weight 0.40 0.30 0.20 0.10 Share A B C D B 1.40 1.20 0.95 1.05 Specific Risk 25% 30% 20% 15% The risk-free interest rate is 5% p.a., the market offers an expected return 3% p.a. above the risk free rate, and the standard deviation of the market return is 20%. (a) (b) (C) Calculate the B of the portfolio; Calculate the expected return on the portfolio using the CAPM; What percentage of the portfolio variance is due to the specific risk

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