art 3 Financial Assets blems 8-1 EXPECTED RETURN A stock's returns have the following distribution: ems Rate of Return if this Demand Occurs Probability of this Demand Occurring Demand for the Company's Products (30%) Weak (14) Below average 0.3 Average Above average Strong 1.0 Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. 8-2 PORTFOLIO BETA An individual has $20,000 invested in a stock with a beta of 0.6 aw another $75,000 invested in a stock with a beta of 2.5. If these are the only two investic in her portfolio, what is her portfolio's beta? 8-3 REQUIRED RATE OF RETURN Assume that the risk-free rate is 5.5% and the reqe on the market is 12%. What is the required rate of return on a stock with a 8-4 n on a stock with a beta of 2? EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free the market risk premium is 4%. What is the required return for the overall What is the required rate of return on a stock with a beta of 0.87 at the risk-free rate is 3.5% and he overall stock market? DETAIL