Question 5 (8marks) Simon holds a portfolio called BlueTech, a portfolio consisting of listed technology companies. Simon is worried about the anticipated rise in interest rates impacting his portfolio negatively and is therefore considering investing in the market portfolio. Additional information: a) What is the risk that Simon is worried about called and how is it measured? (2) b) Calculate the beta for BlueTech and compare the riskiness of this portfolio to that of the market. (3) c) Using the CAPM, calculate the return and state whether this security is under or overvalued. (2) d) According to your answers above, should Simon stick with BlueTech or should he switch to the market portfolio? (1)