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9. Assume that you form an equally weighted portfolio with half of your money in each of the following two stocks. E(R) St. Dev. El
9. Assume that you form an equally weighted portfolio with half of your money in each of the following two stocks. E(R) St. Dev. El Paso Electric Co. 8.0% 10.0% Gillette 15.0% 20.0% The correlation coefficient (p) between the stocks is -0.25 What is the expected return, and the standard deviation of return of the equally weighted portfolio? 10. Your investment analyst has determined the beta for MicroQuik stock is 1.3. The expected return on the market is 10.2% and the current T-bill rate is 1.5%. What is the expected return for Microquik? 11. The beta of Golf and Eastern Corp. is 1.35. The risk-free rate is 2 percent and the market risk premium is 8 percent. Calculate the expected return for G&E
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