3. Use the following information to answer the questions. Standard Deviation Security Beta Expected return S&P 500 Risk-free security Stock D Stock E Stock F 1.0 0.0 C) 0.5 2.0 10.0% 2.0% 14.0% 13% 20% 15% 1) Figure out the market risk premium. (10points) 2) Figure out the beta for Stock D. (20points) 3) Which stock should offer a higher expected return between Stock E and Stock F? (30points) 4) You form a portfolio by investing $4,000 in Stock E and $6,000 in Stock F. What is the beta for your portfolio? What is the expected return for your portfolio? (40points)