17. Asset A has a reward to risk ratio of 075 and a beta of 1.5. The risk-free rate is 5%. What is the expected return on A? A) 11.25% B) 12.25% C 13.50% D) 14.25% E) 16.25% Return on B -2% Use the following information to answer question 18-21. State Probability Return on A 0.3 12% Normal 8% Bust 0.1 4% Boom 29% 0.6 What is the expected return on asset A? A) 1.2% B) 4.0% C) 8.0% D) 8.8% E) 9.3% 19. What is the standard deviation of return for asset B? A) 1.3% B) 1.9% C) 2.5% D) 2.4% E) 6.4% 20. What is the expected retum on a portfolio that is 60% invested in A, and 40% invested in B? A) 2.2% B) 4.4% C) 5.8% D) 8.8% 9.9% What is the standard deviation of a portfolio that is 60% invested in A, and 40% invested in B? A) 0.5% B 0.9% C) 1.5% D) 2.3% E 6.4%