QUESTION 1 Suppose you are interested in the following two stocks:...

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QUESTION 1 Suppose you are interested in the following two stocks: Stock Expected Return Alpha 10% Beta 6% What is your expected portfolio return if you put 40% of you investment in Alpha, and 60% of your investment in Beta? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) QUESTION 3 Return Year Stock A Stock B Stock C 1 15% 12% 5% 2 25% 14% -6% 3 8% 9% 10% 4 16% 25% 1% 5 5% 3% 15% Given the data above What is the standard deviation of returns for stock A? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) What is the variance of returns for stock B? (Show your work. Label %. Three decimal places required. Highlight or bold your answer.) What is the average return of stock C? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) What is the average return of a portfolio that has 45% invested in stock A 35% invested in stock B, and the rest invested in stock C? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) QUESTION 4 The expected possible outcomes for Roxy Stock are below. What is the expected return? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) What is the expected variance? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) What is the expected standard deviation? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) Outcome Probability Return Recession 40% -25% Expansion 25% 20% Boom 35% 45% QUESTION 5 Security has a beta of 1.3. the risk-free rate is 4% and the expected return on the market is 11% What is the expected return for Security I? (Show your work. Label %. One decimal place required. Highlight or bold your answer.) QUESTION 7 The following data is given: Security $ Invested Beta 1 $9,000 0.7 2 $5,000 0.9 3 $8,000 1.2 What is the portfolio beta? (Show your work. Four decimal places required. Highlight or bold your answer.) QUESTION 8 You bought a share of Bavarian Sausage stock for $46.50 at the beginning of the year. During the year the stock paid a $2.75 dividend and at the end of the year it trades at $52.75 What is the total return of your stock investment? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.) What is the total dollar return on your investment? (Show your work. Label $. Two decimal places required. Highlight or bold your answer.) QUESTION 11 Security $ Invested Expected Return 1 $5,000 7% 2 $7,000 9% 3 $9,000 12% Give the data above: What is the weight of Security 1? (Show your work. Label %. One decimal place required. Highlight or bold your answer.) What is the weight of Security 2? (Show your work. Label %. One decimal place required. Highlight or bold your answer.) What is the weight of Security 3? (Show your work. Label %. One decimal place required. Highlight or bold your answer.) What is the expected return on the portfolio? (Show your work. Label %. Two decimal places required. Highlight or bold your answer.)

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