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Assume a portfolio consists of four stocks. The alpha, beta,… Assume a portfolio consists of four stocks. The alpha, beta, standard deviation of residual and investment of millions of dollars of each stock are in the table below:                                                                         Stocks ABCD Alpha (a)2314 Beta (ß)1.51.30.80.9 Standard deviation of residual (sei)3124 Investment $m1234The market expected return is 8% and standard deviation of market returns is 5%.Required: Calculate the following portfolio parameters:a. Portfolio beta  (2 marks)b. Portfolio alpha (2 marks)c. Portfolio variance of returns  (4 marks)d.  Portfolio expected return (2 mark) Business FinanceFIN 923

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