1.You have $26,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 11.0 percent. If your goal is to create a portfolio with an expected return of 13.68 percent, how much money will you invest in Stock X and Stock Y? Amount invested Stock X $ Stock Y $ 2. A portfolio is invested 20 percent in Stock G, 60 percent in Stock J, and 20 percent in Stock K. The expected returns on these stocks are 6 percent, 12 percent, and 16 percent, respectively. What is the portfolio's expected return? (Round your answer to 2 decimal places. (e.g., 32.16)) Portfolio's expected return % 3. Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Probability of Economy State of Economy Stock A Stock B Recession 0.21 0.06 0.21 Normal 0.58 0.09 0.08 Boom 0.21 0.14 0.25 Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) Expected return Stock A % Stock B % Calculate the standard deviation for the two stocks. (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Standard deviation Stock A % Stock B % 4. Problem 13-9 Returns and Variances [LO1] Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 0.55 0.15 0.22 0.42 Bust 0.45 0.14 0.04 0.05 a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Expected return % b. What is the variance of a portfolio invested 24 percent each in A and B and 52 percent in C? (Do not round intermediate calculations and round your answer to 6 decimal places. (e.g., 32.161616)) Variance 5. Problem 13-10 Returns and Standard Deviations [LO1] Consider the following information: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 0.20 0.31 0.41 0.32 Good 0.50 0.18 0.12 0.11 Poor 0.25 0.04 0.07 0.05 Bust 0.05 0.15 0.27 0.08 a. Your portfolio is invested 28 percent each in A and C, and 44 percent in B. What is the expected return of the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16)) Expected return % b-1 What is the variance of this portfolio? (Do not round intermediate calculations and round your answer to 5 decimal places. (e.g., 32.16161)) Variance b-2 What is the standard deviation? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Standard deviation %