$1.$Dothan Inc.$\text{'}$s stock has a $25\%$ chance of producing a $30\%$ return, a $50\%$ chance of producing a $1\mathrm{.}5\%$ return, and a $25\%$ chance of producing a $-16\%$ return. What is the firm's expected rate of return? a$\mathrm{.}7\mathrm{.}72\%$b$\mathrm{.}8\mathrm{.}12\%$c$\mathrm{.}8\mathrm{.}55\%$d$\mathrm{.}9\mathrm{.}25\%$e$\mathrm{.}9\mathrm{.}75\%.$

$2.$ Bae Inc. is considering an investment that has an expected return of $13\%$ and a standard deviation of $10\%.$ What is the investment's coefficient of variation? a$\mathrm{.}0\mathrm{.}67$b$\mathrm{.}0\mathrm{.}77$c$\mathrm{.}0\mathrm{.}81$d$\mathrm{.}0\mathrm{.}85$e$\mathrm{.}0\mathrm{.}98.$Tom O'Brien has a $2-$stock portfolio with a total value of $$100,000.$ $$37,500$ is invested in Stock A with a beta of $0\mathrm{.}75$ and the remainder is invested in Stock B with a beta of $1\mathrm{.}52.$ What is his portfolios beta? a$\mathrm{.}1\mathrm{.}17$b$\mathrm{.}1\mathrm{.}23$c$\mathrm{.}1\mathrm{.}27$d$\mathrm{.}1\mathrm{.}33$e$\mathrm{.}1\mathrm{.}42.$

Calculate the required rate of return for Climax Inc., assuming that $(1)$ investors expect a $2\mathrm{.}7\%$ rate of inflation in the future, $(2)$ the real risk$-$free rate is $3\mathrm{.}5\%,(3)$ the market risk premium is $5\mathrm{.}0\%,(4)$ the firm has a beta of $1\mathrm{.}10,$ and $(5)$ its realized rate of return has averaged $15\mathrm{.}0\%$ over the last $5$ years. a$\mathrm{.}10\mathrm{.}29\%$b$\mathrm{.}10\mathrm{.}83\%$c$\mathrm{.}11\mathrm{.}00\%$d$\mathrm{.}11\mathrm{.}20\%$e$.11\mathrm{.}70\%$