1. Use the following information to answer the questions. Security Beta Standard Deviation Expected return 1.0 S&P 500 10% 8.0% Risk-free security 0.0 0% 4.0% 10.0% Stock D 20% 0.8 Stock E 15% ( % 25% ( )% Stock F 1) Figure out the beta for Stock D and the expected return for Stock E. (30points) 2) You form a portfolio by investing $4,000 in the market portfolio and 56,000 in the risk- free security. Figure out the expected return, the standard deviation, and the beta for your portfolio. (45points) 3) The complete portfolio of $1,000 is composed of the risk-free security and a risky portfolio, P. constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 40% and 60% respectively. Given the risk-free rate of 4%. X has an expected return of 10%, and Y has an expected return of 12%. a) Figure out the expected return for the risky portfolio, P. (15points) b) To form a complete portfolio with an expected return of 7.6%, how much should you invest in the risk-free security, securities X and Y. respectively? (30points)