1) A stock had returns of 6 percent, 9 percent, 2 percent, and 12 percent over the past 4 years. What is the standard deviation of this stock for the past four years?

a) 4.4 percent

b) 15.3 percent

c) 8.8 percent

d) 2.8 percent

2) What is the beta of a portfolio comprised of the following securities?

Stock

Amount Invested

Security Beta

A

$3,900

1.42

B

$4,900

1.53

C

$7,400

1.00

a)1.261

b) 1.530

c)1.000

d)1.317

e)1.420