1. The returns on two stocks ABA and ZYZ has the following parameters:

Percent Return	ABA	ZYZ
Mean	14	11
Standard Deviation	17	14

The correlation between the returns of ABA and ZYZ is 0.3.

What is the mean percent return of the portfolio that invests .70 in ABA and 0.30 in ZYZ?

Please answer to two decimal places

2. The returns on two stocks BAB and YZY has the following parameters:

Percent Return	BAB	YZY
Mean	8	10
Standard Deviation	18	15

The correlation between the returns of BAB and YZY is 0.7.

What is the variance of the portfolio that invests .70 in BAB and 0.30 in YZY?

Please answer to two decimal places.

3. Suppose you have the following information about X and Y:

	Mean	SD
X	10	7
Y	50	3
Corr(X,Y)	0.7

What is the estimated least squares regression line where Y is the DV and X is the IV?

Group of answer choices

A) 53 + .3*X

B) 43 + .7*X

C) 47 + .3*X

D) 49.67+0.033*X