11(a)

What are the portfolio weights for a portfolio that has 152 shares of Stock A that sell for $30 per share and 120 shares of Stock B that sell for $20 per share? (Do not round intermediate calculations and round your answers to 4 decimal places. (e.g., 32.1616))

	Portfolio weights
Stock A
Stock B

11(b)

You own a portfolio that has $3,900 invested in Stock A and $4,900 invested in Stock B. If the expected returns on these stocks are 11 percent and 14 percent, respectively, what is the expected return on the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Portfolio expected return

%

11(c)

You own a portfolio that is 34 percent invested in Stock X, 22 percent in Stock Y, and 44 percent in Stock Z. The expected returns on these three stocks are 11 percent, 18 percent, and 14 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Portfolio expected return

%

11(d)

Based on the following information:

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
Depression	.08	.112
Recession	.18	.052
Normal	.44	.123
Boom	.30	.204

Calculate the expected return. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return

%

Calculate the standard deviation. (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Standard deviation

%

11(e)

A stock has a beta of 1.00, the expected return on the market is 10 percent, and the risk-free rate is 3.0 percent. What must the expected return on this stock be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Expected return

%

11(f)

A stock has an expected return of 14 percent, the risk-free rate is 6 percent, and the market risk premium is 10 percent. What must the beta of this stock be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Beta of stock

11(g)

A stock has an expected return of 13.5 percent, its beta is 1.45, and the risk-free rate is 6.5 percent. What must the expected return on the market be? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Market expected return

%