9. The stock of Tori has a beta of 1.70 and an expected return of 15.80 percent. The risk-free rate of return is 3.36 percent. What is the expected return on the market? 10. Based on the following information: State of Economy Stock A Rate of Return Recession Normal Probability of State of Economy .20 .60 .20 .04 .08 .16 Stock B Rate of Return -.20 20 .60 Boom a) Calculate the expected return and standard deviation for the two stocks. b) What is the expected return and variance of a portfolio invested 25% in A and 75% in B. 11. Consider the following information State of Economy Probability of State of Economy Stock A Rate of Return .14 Stock B Rate of Return Stock C Rate of Return Boom .65 .18 .26 Bust .35 .08 .02 -.02 a) What is the expected return and variance of an equally weighted portfolio of these three stocks? b) What is the expected return and variance of a portfolio invested 25 percent in A and B, and 50 percent in C