A portfolio is invested 20 percent in Stock G, 60 percent in Stock J, and 20 percent in Stock K. The expected returns on these stocks are 6 percent, 20 percent, and 29 percent, respectively. What is the portfolio's expected return?

rev: 09_20_2012

19.00%

14.67%

19.76%

18.05%

19.95%

A stock has an expected return of 15 percent, its beta is 0.45, and the risk-free rate is 7.5 percent. What must the expected return on the market be?

rev: 09_20_2012

24.17%

25.38%

25.13%

22.96%

16.67%

Your portfolio is invested 30 percent each in stocks A and C, and 40 percent in stock B. What is the standard deviation of your portfolio given the following information?

State of Economy	Probability of State of Economy	Rate of Return if State Occurs
		Stock A	Stock B	Stock C
Boom	0.25	0.25	0.25	0.45
Good	0.25	0.10	0.13	0.11
Poor	0.25	0.03	0.05	0.05
Bust	0.25	-0.04	-0.09	-0.09

12.38 percent

12.64 percent

12.72 percent

12.89 percent

13.97 percent