a. Suppose you have $100,000 total. If you put $50,000 in Stock A and $50,000 in Stock B, what will be the expected return of your portfolio? (3 points). b. Calculate the standard deviation of the portfolio of Stock A and Stock B. (3 points) c. Why is the standard deviation of the portfolio not a weighted average of the standard deviations of Stocks A & B? (2 points) SAL 2. Find the weighted average cost of capital (WACC) for Walters Company using the information below. (6 points) Debt: 10,000 5.6% annual coupon bonds outstanding, $1,000 par value, 10 years to maturity, selling at $950 per bond. Common stock: 500,000 shares outstanding, selling at $48 per share, with a beta of 1.4. Market: There is a 7% market risk premium and 3.5% risk free rate. Corporate tax rate: 21%. 3. Stock A has a beta of 1.2 and an expected return of 9.8%. If the risk free rate risk premium is 6%, is this stock correctly priced? If it is not correctly priced overpriced or underpriced. (2 points) and the market Whether it is