1. In a portfolio of stock I and stock II, 33% of the funds are invested in stock I. What is the expected return on the portfolio if stock I has an expected return of 18% per year stock II's expected return is 8.75% ? 2. In a portfolio of stock X and stock Y, stock X has an expected return of 12.50% per year. If 40% of the funds are invested in stock X, what is the expected return on stock Y if the portfolio's expected return is 14.60% ? 3. In a portfolio of stock P and stock Q, 55% of the funds are invested in stock P. What is the standard deviation of the portfolio return if stock P has a standard deviation of 16% and stock Q's standard deviation is 12% ? The correlation coefficient is 0.25. For Quectinn 4-7. 4. The expected rates of return of stocks A and B are and respectively. 5. The standard deviations of stocks A and B are and respectively. 6. The coefficient of correlation between A and B is 7. If you invest 35% of your money in A and 65% in B, what would be your portfolio's expected rate of return and standard deviation? 8. You have $300,000 to invest in Stock I. By how much can the overall coefficient of variation of your investment be improved by allocating $105,000 of the above fund in Stock II? 9. You have a capital budget of $200,000. You invest 70% of it in the risky asset which yield an expected return of 15.5% and the balance in the risk-free asset to earn an interest rate of 4.7\%. How much is the expected return of your portfolio? 10. You have a capital budget of $200,000. You borrow an additional $60,000 at 4.7% interest rate and invest all the money in the risky asset, which yield an expected return of 15.5%. How much is the expected return of your portfolio