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1) HD has a standard deviation of 12% and the market has a standard deviation of 8%. If the Beta of HD is 1.2, what

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1) HD has a standard deviation of 12% and the market has a standard deviation of 8%. If the Beta of HD is 1.2, what is the correlation between it and the market? 2) Boeing has a Beta of 1.2 and the risk-free rate is 2%. If the market risk premium is 10%, what is the expected return of Boeing? 3) You invest your money in a portfolio that is 60% LUV and 40% FB. LUV has a Beta of 1.5 and FB has a Beta of 2.0. If the risk-free rate is 1% and the market risk premium is 10%, the expected return of the portfolio is _ _% and the Beta of the portfolio is 4) There are two stocks (and only two) in the economy, Stock ABC and Stock XYZ. Stock ABC is 20% of the economy with a standard deviation of 15% and a correlation with the market of 0.6. Stock XYZ. If the standard deviation of the market is 10%, Stock XYZ has a Beta of 5) ALL has a Beta of 0.3 and had a return of 15% last year. The risk-free rate last year was 2% and the market had a return of 20%. ALL's alpha last year was

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