A) What is the expected retur (expressed in %) of a portfolio that has $7500 in Stock M and $5000 in Stock N? Assume the following three scenarios Recession (with 15% probability), Normal (with 70% probability), boom (with 15% probability). The returns on Stock M in each scenario are the following -12% in Recession, 6% in Normal, 12% in Boom. The returns on Stock N in each scenario are the following 10% in Recession, -2% in Normal, 5% in Boom B) You are considering a portfolio invested 40% in stock A and 60% in stock B. Stock A has a standard deviation of 12% and Stock B has a standard deviation of 16% The correlation between the two stocks is 0.54 What is the portfolio's standard deviation C) Find the Present Value of growing perpetuity with the first payment of $1000 at t=6 and a growth rate of 3% No payments are made in years 1-6. Assume the annual interest rate (with annual compounding) is 8% D) You want to save for retirement by making equal annual contributions over the next 40 years and use your retirement savings to make equal withdrawals for 30 years after retirement. Assume you make your first withdrawal exactly 1 year after your last deposit. At t=15 you received a one-time bonus of $30,000 that you add to your retirement account in addition to your regular contributions Assume you still plan to make 30 equal withdrawals By how much your annual retirement withdrawals have been increased because of this extra contribution? Assume the annual interest rate (with annual compounding) is 8%