(a) Determine the expected return of security X (b) To reduce the systematic risk of the portfolio, Anna is considering 3 securities to  add to the portfolio. Security A has a beta of 0, security B has a beta of 0.5 and  Security C has a beta of -0.3. Discuss which security will be most effective in  reducing the portfolio’s systematic risk? How would portfolio expected return  change (higher or lower) if you add this security?

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A: Hi, in order to answer part "f", d also needs to be calculated. d) Expected Return of Stock X:

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.