28.) An investor currently holds the following portfolio:

Security Amount Invested Beta

Stock A $16,000 Beta = 1.3

Stock B $48,000 Beta = 1.8

Stock C $96,000 Beta = 2.2

If the risk-free rate of return is 2% and the market return is 9%, then the required return on the portfolio is

	1.	21.91%
	2.	11.95%
	3.	15.93%
	4.	23.93%

36. Stock W has the following returns for various states of the economy:

State of the Economy Probability Stock W's Return

Recession 20% -10%

Moderate Growth 50% 5%

Boom 30% 15%

What is Stock Ws standard deviation of returns?

	1.	7.56%
	2.	4.38%
	3.	8.66%
	4.	5.29%