4. Facebook Inc. (FB) has a beta of 0.88. The risk-free rate (DX) is 3% and the expected return on the market (1) is 15%. What is the market risk premium? 16.48% 13,56% 12% d. 0.88% a. b. c. 5. a. b. c. d. 11. Facebook Inc. (FB) has a beta of 0.88. The risk-free rate (DBE) is 3% and the expected return on the market (DM) is 15%. What is the required rate of return for Facebook's stock? 16.48% 13.56% 12% 0.88% M. Gann is considering four investments A, B, C, D, E. all of which have the same expected return. A's standard deviation is 5.2%, B's standard deviation is 6.4%, C's standard deviation is 7.4%, D's standard deviation is 8.3%, and E's standard deviation is 8.6%. Which investment would Ms. Gann select as a rational, risk-averse investor? a. A b. B c. C d. D e. E 12. a. Stock X has an expected return of 14.75% and Stock Y has an expected return of 24.10%. If you form a portfolio by investing 45% of your funds in Stock X and 55% in Sock Y, then the expected return for your portfolio will be 10.89% b. 14.75% 16.30% d. 19.89% 24.10% c. e. 16. What is the standard deviation of a portfolio of two stocks given the following data? Stock A has a standard deviation of 18% Stock B has a standard deviation of 14%. The portfolio contains 40% of stock A and the correlation coefficient between the two stocks is -23. a. 9.7% b. 12.2% c. 14.0% d. 15.6%