1 Youre trying to calculate the expected return of stock XYZ. You believe that XYZ has a 15% chance of great performance over the next year, in which case it will generate a 0.39 stock return. You believe that there is a 25% chance that XYZ will have good performance, and generate a return of 0.18. You believe there is a 40% chance that XYZ will have OK performance, and generate a return of 0.101, and you believe there is a 20% chance that XYZ will have poor performance, and generate a negative return = -0.09. The risk free rate is 5%. What is the expected return? Present your answer in decimal format and round your answer to threedecimal places.

2 What is the value of a bond that pays a coupon rate of 2.3%, has a face value of $1000, a 1% yield-to-maturity, and 6 years to maturity? Round you answer to the nearest $0.01.

3 Let's say that JFE has an expected return of 0.16 and JFQA has an expected return of 0.16. If we purchased a portfolio by purchasing 658 of JFE stock and 431 of JFQA stock, calculate the portfolios expected returnif the two stocks have a correlation of -1. Present your answer in decimalformat and round your answer to three decimal places.