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1)What are the portfolio weights for a portfolio that has 135 shares of Stock A that sell for $84 per share and 110 shares of

1)What are the portfolio weights for a portfolio that has 135 shares of Stock A that sell for $84 per share and 110 shares of Stock B that sell for $82 per share?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.)

2)Consider the following information:

Probability of State Rate of Return if State Occurs
Economy of Economy Stock A Stock B
Recession .21 .040 .31
Normal .61 .120 .21
Boom .18 .200 .44

Calculate the standard deviation for the two stocks.(Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimalplaces, e.g., 32.16.)

Standard deviation
A %
B %

3)Asset W has an expected return of 13.15 percent and a beta of 1.28. If the risk-free rate is 4.53 percent, complete the following table for portfolios of Asset W and a risk-free asset.(Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your portfolio expected return answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your portfolio beta answers rounded to 3 decimal places, e.g., 32.161.)

Percentage of Portfolio Portfolio
Portfolio in Asset W Expected Return Beta
0 % %
25 %
50 %
75 %
100 %
125 %
150 %

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