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An investment has returned 5%, 3%, 4%, 6%, and 7% in each of the last five years, respectively. We have decided that we want to

An investment has returned 5%, 3%, 4%, 6%, and 7% in each of the last five years, respectively. We have decided that we want to use historical returns as a proxy for expected future returns. What is the standard deviation of these returns?

Assume a stock with a beta of 1.2 currently has an expected return of 10%. According to CAPM, what should be the expected return of a stock with a beta of 0.8 if the risk-free rate is 2%?

We have 30% invested in JKL stock, 40% in MNO stock, and 30% in PQR stock. Returns are 2%, 5%, and 1% respectively. What was our portfolios return?

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