1. Dothan Inc.'s stock has a 25% chance of producing a 17% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return?

5.81%

5.75%

6.27%

4.43%

4.72% 2. Jim Angel holds a $200,000 portfolio consisting of the following stocks:

Stock	Investment	Beta
A	$50,000	0.80
B	$50,000	0.80
C	$50,000	1.00
D	$50,000	1.20
Total	$200,000

What is the portfolio's beta?

		0.817
		1.083
		0.798
		0.732
		0.950