Using the data in Table $2($below$)$:

a$)$ What is the beta of a portfolio that has $40\%$ invested in ExxonMobil and $60\%$ in Newmont?

b$)$ Would you invest in this portfolio if you had no superior information about the prospects for

these stocks? Devise an alternative portfolio with the same expected return and less risk.

c$)$ Now repeat parts $($a$)$ and $($b$)$ with a portfolio that has $40\%$ invested in Travelers and $60\%$ in

Amazon.

Table $2$: hypothetical Betas for companies

Note: your answer $($not including calculations$)$ should be a maximum of $1$ paragraph for $($a$)-($c$).$