14. Given the following probability distributions, what are the expected returns for the Security M and for Security N? State RM RN 0.3 0.4 0.3 10% 10 30 40% 20 30 a. 10.0%; 1 1.3% b. 9.5%; 13.090 . 10.0% 95% d. 10.0%, 13.0% e, 13.0%; 10.0% 15. You are an investor in common stock, and you currently hold a well-diversified portfolio which has an expected return of 12 percent, a beta of 1.2, and a total value of $9,000. You plan to increase your portfolio by buying 100 shares of PV&A at $10 a share. PV&A has an expected return of 20 percent with a beta of 2.0. What will be the expected return and the beta of your portfolio after you purchase the new stock? (Hint: find the weight first) a. p 20.0%; Bo-2.00 b. " 12.8%; ,-1.28 c. Pp 12.096; ,-1.20 e, i, ,: 14.096; ,-1.32 16. Consider the following information, and then calculate the required rate of return for the Scientific Investment Fund. The total investment in the fund is $2 million. The market required rate of return is 15 percent, and the risk-free rate is 7 percent. (Hint use CAPM, but find beta of the portfolio first.) Investment Beta s 200,000 1.50 300,000 500,000 1,000,000 0.75 0.50 1.25 a. 14.3% b. 15.0% c. 13.1% d. 12.7% e. 10.3%