1.

2.

Use the following information to answer the two questions below. You MUST use 4 digits in every calculation you do in order for your answer to be the same as the one in the system. Enter answer using 4 decimals. Do not use or enter %. For example, if your answer is 3.480% enter 0.0350 ; if your answer is 0.12013 then enter 0.1201 What is the expected return of a portfolio with equal investments in each asset? A What is the variance of the portfolio with equal investments in each asset? A Assume the following information about the market and RoseApple's stock. RoseApple's beta =0.50, the risk-free rate is 2%, the market risk premium is 8.0%. Using the SML, what is the expected return for RoseApple's stock? Please follow this format for your answer: if you obtained 43.20% you must enter in one of these 3 formats: 0.4320 or 0.432 or 43.2%