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A) An exploration firm is currently searching for oil. Their probability of finding oil this year is 52% and if they hit oil we expect

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A) An exploration firm is currently searching for oil. Their probability of finding oil this year is 52% and if they hit oil we expect the stock to return 35%. If they do not hit oil we expect the stock to return -13%. What is the expected return of the stock? Give your answer to two decimal places (9.99%) B) An exploration firm is currently searching for oil. Their probability of finding oil this year is 55% and if they hit oil we expect the stock to return 59%. If they do not hit oil we expect the stock to return -13%. What is the standard deviation of the return of the stock? Give your answer to two decimal places (9.99%) C) You form a portfolio by buying $87317 of Hersheys stock, and $85514 of Nestle. If Hershey stock has an expected return of 10.5% and Nestle stock has an expected return of 10%, what is the expected return of your portfolio? Please give your answers to two decimal places (9.99%) D) You form a portfolio by buying $52309 of TMobile stock, and $65191 of Verizon stock. TMobile stock has a beta of 1.08 and Verizon stock has a beta of 1.68. What is your portfolio Beta? Please give your answers to two decimal places (1.00) E) Wendy's has a beta of 1.15. If the expected return on the market is 10.6%, and the risk free rate is 1.9%, what is the expected return on Wendy's stock according to the CAPM? F) You form a portfolio by buying $43115 of TMobile stock, and $55424 of Verizon stock. TMobile stock has a standard deviation of 24% and Verizon stock has a standard deviation of 35%, and they have a correlation of 0.79. What is the standard deviation of your portfolio? Please give your answers to two decimal places (9.99%)

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