1. Using the information below, your Facebook/Burger King/JetBlue portfolio has a beta of:

Stock	Amount Invested				Company's Beta
Facebook		$	3,700			1.38
Burger King		$	4,700			1.49
JetBlue		$	7,200			1.00

• 1.238

• 1.380

• 1.490

• 1.000

• 1.290

2. Mr. Buffetts entire portfolio contains shares of Apple (23%), Kraft (44%), and Verizon. Using the information in the table below, the standard deviation of Mr. Buffetts portfolio is ____________.

State of Economy	Probability of State			Return if State Occurs
	of Economy
				Apple			Kraft			Verizon
Normal		.82			11.30%			4.70%			13.70%
Boom		.18			18.60%			26.60%			18.10%

• 1.80%

• 2.41%

• 6.13%

• 7.15%

• 4.90%