1) Use the following information to answer the questions Security Beta Standard Deviation Expected return 10% 0% 13% 20% 15% 10.0% 2.0% 14.0% S&P 500 1.0 Risk-free security Stock D Stock E Stock F 0.0 0.5 2.0 1) What is the market risk premium? (20points) 2) Figure out the expected return for Stock E and Stock F. (25points) 3) What is the beta for Firm D? (25points) You form a portfolio by investing $4,000 in Stock E and $6,000 in Stock F. What is the beta for your portfolio? (25points) 4) 5) You form a portfolio by investing $8,000 in the market portfolio and $2,000 in a risk- free security. What is the standard deviation of your portfolio? (25points) 6) You plan to invest $10,000 in the market portfolio and a risk-free security. If you want an expected return of 14%, how much do you need to invest in the market portfolio and a risk-free security, respectively? (30points)