1A) Over the past several weeks you have assembled a small stock portfolio via the purchase of small amounts of different company stocks. You know that the point of a portfolio is to reduce your overall exposure to systematic risk, but aren't sure exactly what the risk of your new portfolio is. You have purchased the following : $9,000 of Ford Stock, $1,000 of John Deer Stock, and $3,000 of Health Care of America (HCA) Stock. You have estimated the betas of these stocks to be the following : a B of 3.87 for Ford, a B of 1.90 for John Deere, and a B of 0.8 for HCA. What is the beta of your portfolio? (Round to 2 digits)

1B) You are going to make a portfolio consisting of 90 % of Bank of America Stock and 10 % of Caterpillar Stock. You also have the following information:

State i	Probability of State i	BOA Return	Caterpillar Return
Boom	50 %	28 %	18 %
Bust	50 %	-8 %	2 %

What is the expected return for the portfolio? (Answer as a percentage and Round to 2 decimals)

1C)

You are going to make a portfolio consisting of 90 % of Bank of America Stock and 10 % of Caterpillar Stock. You also have the following information:

State i	Probability of State i	BOA Return	Caterpillar Return
Boom	50 %	28 %	18 %
Bust	50 %	-8 %	2 %

What is the standard deviation for the portfolio? (Answer as a percentage and Round to 2 decimals)