4. Dick Marcus invests in individual stocks through TD Ameritrade as well much more in mutual funds with Vanguard and Fidelity. His TD Ameritrade stock portfolio of individual stocks currently is: Stocks in Portfolio Microsoft Costco Black Rock Visa Badger Meter Portfolio Weights 30% 20% 20% 20% 10% 100% Expected Returns 13% 9% 11% 8% 14% Calculate Prof. Marcus' expected portfolio return. a. 9.9% b. 10.9% c. 11.9% d. 12.1% 5. Consider the following information: Rate of Return if State Occurs Probability of State of State Stock Stock Stock Economy of Economy A B C Boom 0.8 0.11 0.14 0.20 Bust 0.2 0.04 0.08 -0.06 What is the expected return on an equally weighted portfolio of these three stocks? a. 13.2% b. 13.5% C. 12.4% Salle d. 11.1% 6. a. Which one of the following terms best refers to the practice of investing in a variety of diverse assets as a means of reducing risk? Systematic b. Unsystematic C. Diversification d. Security market line