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1. You own a portfolio that is 20% invested in Stock X, 30% in Stock Y, and 50% in Stock Z. The expected returns on

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1. You own a portfolio that is 20% invested in Stock X, 30\% in Stock Y, and 50% in Stock Z. The expected returns on these three stocks are 8%,13% and 7%, respectively. What is the expected return of the portfolio? 2. You have $240 to invest. Your choices are Stock A with a return of 12% and Stock B with a return of 5%. You want a portfolio with a return of 8%. How much money should you invest in Stock B? 3. A stock has an expected return of 11%, the risk-free rate is 5%, and its beta is 0.7 . What must the expected return of the market be? 4. What is the expected return for a stock that has a beta of 0.9 when the return of the market is 10% and the risk-free rate is 4%. 5. A stock has an expected return of 10.8% and a beta of 0.7 , and the expected return of the market is 12%. What must the risk-free rate be

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