QUESTION 5(a) Evaluate and explain the statement: "If we could just make our investment portfolio large enough, we could completely eliminate risk and earn a market portfolio rate of return with the risk of a risk-free investment." (8 marks) QUESTION 5(b) .Rene owns the following portfolio of securities. Find the beta for the portfolio. (3 marks) Company Beta Percent of Portfolio Microsoft 1.82 50% GM 0.53 30% Dullco 0.67 20% ii.Given an expected market return of 10.0%, a beta of 1.75 for Carlson Industries, and a risk- free rate of 2.0%, find the expected return for the firm. (3 marks) II.Assuming a risk-free rate of 8 percent and a market return of 12 percent, would a wise investor acquire a security with a beta of 1.5 and a rate of return of 14 percent given the facts above? (4 marks)