1.You are managing a $1 million portfolio that has a beta of 1.6 and a return of 14%.The risk-free rate is 6%.If you receive $200,000 from an investor and want to invest the money in a stock that has a beta of 0.6 and a return of 9%, what is the expected return on your $1.2 million portfolio?

A.12.84%

B.12.25%

C.13.17%

D.14.12%

2.The risk-free rate is 5% and the market expected return is 15%. The current stock price of EMC is $40. EMC is expected to pay a dividend of $2 per share at the end of the year. EMC's beta is 1.4. What is EMC's expected share price at the end of the year?

A.$37.9

B.$45.6

C.$53.9

D.$50.1

3.You form a portfolio using stock KPMG and a treasury bill with a sure rate of 5%. KPMG has an expected return of 12% and a standard deviation of 10%. Your portfolio's standard deviation will be 18% if you ___.

A.Invest 80% in KPMG and 20% in the risk-free asset

B.Borrow 80% at the risk-free rate and invest 180% in KPMG

C.Borrow 20% at the risk-free rate and invest 120% in KPMG

D.Invest 80% in the risk-free asset and 20% in KPMG

4.You invest in a minimum variance portfolio of two stocks, BEAR and BULL. The expected return on BEAR is 18% and its variance is 0.04. The expected return on BULL is 12% and its variance is 0.0025. The correlation coefficient between BEAR and BULL is -0.5. The weight on BEAR in your portfolio is ____.

A.68.4%

B.14.3%

C.13.2%

D.73.9%