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6) You have the following data on a portfolio. You have decided to invest 55% of your money in A and 45% in B. Find

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6) You have the following data on a portfolio. You have decided to invest 55% of your money in A and 45% in B. Find the return on your portfolio. Economy Bust Boom Probability 0.60 0.40 Return on A 5% 30% Return on B -10% 65% a) 17.25% b) 19.0% c) 21.5% d) 15.5% e) 16.75% 7) You have the following data on a Stock. Find the standard deviation. (Suggested answers are shown in decimal form and could be multiplied by 100 to be shown as a percentage.] Economy Bust Boom Probability 0.60 0.40 Return on A -10% 40% a) .15 b) .185 c) .210 d) .245 e) .392 8) Biggie Inc. has a stock beta of 1.75 and Shakur Inc. has a stock beta of 3.10. If you put 25% of your money in Biggie and 75% in Shakur, what will be the beta of your portfolio? a) 2.76 b) 1.95 c) 1.77 d) 2.49 e) 3.25

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