9. Shares of Kel Co stock will return -2.1% during a recession, 5.7% during a normal economy, and 19.4% during a boom economy. If there is a 12% chance of recession, and 19% chance of a boom, what is the expected return for Kel Co?

10. You form a portfolio of stocks. Stock A has an expected return of 1.1%, Stock B has an expected return of 9%, and Stock C has an expected return of 9.6%. If 13% of your portfolio is invested in stock A, and 20% of your stock is invested in Stock C, what is your expected portfolio return?

11. You purchase 10 shares of Starbucks stock at $106.6 per share. Additionally, you purchase 18 shares of Tyson Foods for $31.6 and 21 shares of Uni-lever for $20.9 each. What is your portfolio weight for Starbucks?

12. An investment promises to pay you $1,488 per year for 19 years. Unfortunately, it will be 6 years before you receive the first payment. Assuming you require an 12% return, value this investment.

13. What is the value today of an investment that pays $4,924 per

year for the next 23 years if you require an 9% return. Assume you receive the first payment today.

Hint: If you change your calculator setting to solve this problem, don't forget to change it back before moving on.

14. You're offered an investment that will pay you 8,706 in one year, 5,697 in two years, 1,599 in 3 years, and 1,933 in 4 years. If you require a return of 6%, what is this investment worth to you?

15. You take out a $200,000 home loan with a 30 year term and a 6% interest rate. How much of the 45th payment is applied towards principal?

16. 11 years ago you deposited 3,539 into an account. Today that account has a balance of 13,226. If the account offers quarterly compounding, what rate of return did you earn?