1.In general, the lower the beta of a stock, the ________ its expected or required return.

higher

lower

2. Portfolio Weighting, part 1. Suppose you own a portfolio that consists exclusively of high tech stocks currently valued as follows: $6,000 in Google/Alphabet, $1,200 in Intel, $8,500 in Apple, and $2,800 in Microsoft. What is the portfolio weight of your stock in Intel?

13.2 percent

12.44 percent

10.5 percent

6.5 percent

3.9 percent

3.Portfolio Weighting, part 2. You own a portfolio that is invested in large-cap, dividend paying stocks as follows: 25 percent in AT&T, 40 percent in P&G, and the remainder in Verizon. Suppose the expected returns on these stocks are 8 percent, 16 percent, and 5 percent, respectively. What is your expected return on this portfolio?

8.28 percent

10.15 percent

12.39 percent

13.14 percent

14.58 percent