This problem set is due Wednesday, October 26 at 11:59pm by Gradescope submission. No deadline extensions will be granted for any reason. If you use an Excel spreadsheet for any of the calculations, please submit the Excel file as well. You may work together, but each student must submit his/her own solutions. If you have any questions about this problem set, please attend precept or post your question on Ed Discussion. 1. The following table reports the expected annual return and beta for three stocks. The riskless interest rate is 0.42% per year. Assume that the CAPM holds. Expected Stock return (%) Beta \"Amazon 087 Coca-Cola 430 0.41 Walt Disney 1.35 [3 points total, 1 point each part] (a) What is the expected return on a portfolio that invest5,000 in Amazon, $2,000 in Coca-Cola, and $3,000 in Walt Disney? (b) Suppose that you have$10,000 to allocate between the riskless asset and a market portfolio of all US stocks that has a beta of 1. How much should you allocate to the market portfolio so that your overall portfolio has the same expected return as the portfolio in part (a)? Round your answer to the nearest dollar. (c) In reality, would you prefer to hold the portfolio in part (a) or (b)? Explain your