1. If you had $10,000 to invest on stocks of Walmart and Traget and you were maximizing Sharpe ratio using 0.0028 as risk free rate, how much would you invest on each stock?

A. $4,268.24 on Walmart's stock and $4,268.24 on Target's stock.

B. $7,265.38 on Walmart's stock and $2,734.62 on Target's stock.

C. $5,623.51 on Walmart's stock and $4,376.49 on Target's stock.

D. $7,141.87 on Walmart's stock and $2,858.13 on Target's stock.

2. What is the value of beta for each stock?

A. Walmart: -0.0324 and Target: -0.6512

B. Walmart: 0.5264 and Target: 0.6214

C. Walmart: -0.0083 and Target: 0.8087

D. Walmart: 0.1571 and Target: 0.3842

Table 2 Dividend Paid per Walmart Stock during the year Closing Stock Price Closing Stock Price of Target 32.25 41.05 30 38.4 51.93 54.97 57.05 50 34.52 48.36 60.13 51.22 59.16 63.27 75.7 S&P 500 Index Value 1320.28 1148.08 879.82 1111.92 1211.92 1248.29 1418.3 1468.36 903.25 1115.1 1257.64 1257.6 1426.19 1848.36 2080.35 Date of Walmart 31-Dec-01 31-Dec-02 31-Dec-03 31-Dec-04 53.12 57.54 50.5 53.05 31-Dec-05 52.82 46.79 46.18 47.52 56.06 53.45 31-Dec-11 53.93 59.75 68.23 78.69 31-Dec-15 86.79 4 0.28 0.36 0.52 0.6 0.672 0.88 0.952 1.092 1.212 1.46 1.592 1.88 1.92 31-Dec-06 31-Dec-07 31-Dec-08 31-Dec-09 31-Dec-10 10 13 31-Dec-12 31-Dec-13 31-Dec-14 16 17 18 19