1. Suppose the current value of a portfolio of stocks is $30. Using scenario analysis of the uncertainty about next years holding period return, you calculate the following end-of-year values of the portfolio.

Scenario	Probability	End-of-year value ($)	Dividend ($)
High growth	10%	55	4
Normal growth	45%	40	4
No growth	35%	24	2
Recession	10%	20	0

What are the holding period returns of the portfolio in each scenario? Calculate the expected return (mean) and variance and standard deviation of returns on the portfolio.

2.A portfolio with a 25% standard deviation generated a return of 15% last year when T-bills were paying 4.5%. Wat is the Sharpe ratio of this portfolio?

3.An investment has a 50% chance of doubling your investment in 1 year and a 50% chance of losing half your money. What is the expected return on this investment project? What is the standard deviation?

4.A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 24%, while stock B has a standard deviation of return of 18%. Stock A comprises 60% of the portfolio, while stock B comprises 40% of the portfolio. If the variance of return on the portfolio is .0380, calculate the correlation coefficient between stocks A & B