An investor currently holds the following portfolio of 4 stocks, each having equal weight:
Stock Expected Return (rs) Beta
A 14.90% 1.70
B 8.25% 0.75
C 11.40% 1.20
D 6.50% 0.50
a. What is the portfolio’s expected return?
b. What is the portfolio’s beta risk? Is it more or less risky than the market?