1.You own a portfolio that is 32 percent invested in Stock X, 47 percent in Stock Y, and 21 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively.What is the expected return on the portfolio?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces,e.g., 32.16.)

2.You own a stock portfolio invested 22 percent in Stock Q, 23 percent in Stock R, 42 percent in Stock S, and 13 percent in Stock T. The betas for these four stocks are .88, .94, 1.34, and 1.79, respectively.What is the portfolio beta?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

3.A stock has a beta of 1.06, the expected return on the market is 10 percent, and the risk-free rate is 4.95 percent.What must the expected return on this stock be?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

4.A stock has an expected return of 13.2 percent and a beta of 1.18, and the expected return on the market is 12.2 percent.What must the risk-free rate be?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

5.A stock has a beta of 1.33 and an expected return of 13.1 percent. A risk-free asset currently earns 4.45 percent.

a.What is the expected return on a portfolio that is equally invested in the two assets?(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

b.If a portfolio of the two assets has a beta of .93, what are the portfolio weights?(Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

c.If a portfolio of the two assets has an expected return of 12.3 percent, what is its beta?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

d.If a portfolio of the two assets has a beta of 2.53, what are the portfolio weights?(A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

6.Consider the following information:

State of Economy. Probability of State of Economy. Rate of Return

Recession. 19 -.10

Normal. 46 .12

Boom. 35 .31

Calculate the expected return.(Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimalplaces, e.g., 32.16.)