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1. Use the following information to answer the questions. 1) Figure out the expected return for Firm A. (20points) 2) Figure out the beta for

image text in transcribed 1. Use the following information to answer the questions. 1) Figure out the expected return for Firm A. (20points) 2) Figure out the beta for Firm B (30points) 3) Compare Firm A with Firm C. i) Which firm has higher total risk? Firm A or C? (20points) ii) Which firm will have higher expected return? Firm A or C? (20points) 4) Compare Firm B with Firm D. i) Which firm has higher diversifiable risk? Firm B or D (20points) ii) Does Firm B have a lower(or higher)/the same systematic risk than/as Firm D? (20points)

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