1. To decrease an equity account, you need ____ the account.

2. Abc Stock has an expected return (mean) of 4% and a standard deviation of 2%. Assume that ABC's returns are normally distributed. What is the probability that abc will produce returns less than 6%?

3. A stock that is above the security market line is said to be:

6. For a portfolio of two stocks, stocks has a beta of 2.0 and stock B has a beta of 0.8. Funds are allocated with 60% in stock a and 40% in stock B. if the T bill rate is 4%, and the market expected return is 13% what is the required return on the portfolio?