$3$A

You are considering buying some share in The Wayne Coporation as part of your retirement account. First, you want to calculate the expected return for Wayne Corp's stock to see if it meets your very high standards. You have estimateed the $\backslash$beta

for Wayne Corp to be $1\mathrm{.}07,$ the risk free rate in the market to be $3\%,$ and the expected return on the market to be $11.$ What is the expected return for Wayne Corp? $($Answer in Percentage terms and Round to $2$ decimals$)$

$3$B

You are going to make a portfolio consisting of $70\%$ of Bank of America Stock and $30\%$ of Caterpillar Stock. You also have the following information:

State i Probability of State i BOA Return Caterpillar Return

Boom $50\%40\%22\%$

Bust $50\%-8\%0\%$

What is the expected return for the portfolio? $($Answer as a percentage and Round to $2$ decimals$)$

$3$C

You are going to make a portfolio consisting of $70\%$ of Bank of America Stock and $30\%$ of Caterpillar Stock. You also have the following information:

State i Probability of State i BOA Return Caterpillar Return

Boom $50\%40\%22\%$

Bust $50\%-8\%0\%$

What is the standard deviation for the portfolio? $($Answer as a percentage and Round to $2$ decimals$)$