Question: Question Four (Total 9 Marks) (4.1). Consider a portfolio that comprises four investments with betas equal to 1.2, 0.55, 1.6 and 0.60. If you invest

Question Four (Total 9 Marks) (4.1). Consider a portfolio that comprises

Question Four (Total 9 Marks) (4.1). Consider a portfolio that comprises four investments with betas equal to 1.2, 0.55, 1.6 and 0.60. If you invest equal amount in each investment, what will be the beta for the portfolio? [3 marks] The risk free rate (4.2). What will be the expected rate of return on the portfolio in (4.1)? is 5.5% and the return on market portfolio is 18.5%. Use CAPM. [3 Marks] (4.3). Explain unsystematic and systematic risk in investment portfolios and which risk is diversified and how? [3 Marks] Question Five (Total 6 Marks) nch Polynesia FRANCE Alan Pacaim alares JUKI SOUTH PACIF OCE

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