Suppose you manage a $500,000 retirement portfolio.  It is m…

Suppose you manage a $500,000 retirement portfolio.  It is made up of these mutual fund investments: Fund                Investment                  Beta.               Firm Projected Return A.                     $150,000                     2.0                               12 B                        50,000                      0.4                               6 C                       200,000                     1.1                               10 D.                      100,000                     0.9                              8   A.   What is the beta of the portfolio? B.   Given the Firm Projected Return,  what is the expected return on the portfolio?   C.  Using the Beta you calculated above, if the Risk Free rate is 3% and the Market risk premium is 6% what rate of return does the Capital Asset Pricing Model predict this portfolio should return?   D  According to the Capital Asset Pricing Model,  given the betas above, the Risk Free rate of 3% and if the Market risk premium is 6%  what should each of these assets return?   E If the CAPM estimate is correct, based on the firm’s projected return, which assets would the firm buy more of and which would it sell?