Anna is a Vice President at the J Corporation. The company is considering investing in a new factory and Anna must decide whether it is a feasible...

Anna is a Vice President at the J Corporation. The company is considering investing in a new factory and Anna must decide whether it is a feasible project. The annual returns for J Corp. and for a market are given below. Currently, the risk-free rate of return is 1.9% and the market risk-premium is 6.1%.

Year J Corp. Return (%) Market Return (%)       

1 -2.35 -1.10       

2 17.03 8.59       

3 25.67 12.91       

4 23.67 11.91       

5 -17.95 -8.90       

6 31.55 15.85       

7 73.05 36.60       

8 25.97 13.06       

9 8.05 4.10       

10 19.03 9.59       

11 -11.93 -5.89       

12 -1.95 -0.90         

Beta of J Corp.'s stock = 2.0

Expected rate of return on J Corp. stock for the coming year = 14.10%

Cost of Equity = 14.10%

Cost of Debt = 2.5130%

Total Value of Firm = $446,830,500

Weight of Bonds = 11.3680%

Weight of Equity = 88.6320%

WACC = 12.78%

Net operating cash flow/year = $1,139,256.20

NPV = $588,409.90

IRR = 1.26%

Richard has just received an unexpected bonus at work worth $2,750 and, given the J Corp.'s reputation for excellent investment decision making, he will invest the entire bonus in J Corp. stock. Given the rates of return for stocks A, B, C, and D listed above and the rates of return for J.Corp stock and the market presented, as well as the cash amounts he is investing in stocks A, B, C, and D;

What is the beta of Richard's portfolio?

Would Richard's portfolio be described as aggressive, defensive, or neither?