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15. Based on the following probability distribution, what is the security's expected return? (1o points) State Probability 0.1 0.1 0.8 -50% 10.0 30.0 3 2

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15. Based on the following probability distribution, what is the security's expected return? (1o points) State Probability 0.1 0.1 0.8 -50% 10.0 30.0 3 2 16. Marvin has investments with the following characteristics in his portfolio: (10 points) Expected Amount Investment Return, Invested $10,000 50,000 40,000 A. EFG QRP 40% 16 10 What is the expected return of Marvin's portfolio of investments, ip? 17. Suppose risk free rate is 5%, return on nnarket is 11%, and return on stock B is 14%. Calculate Stock B's beta, ? (10 points) a. If Stock B's beta were 1.5, what would be B's new required rate of return? (5 points)

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