As CFO of Wolverine World Wide, your personal investments are not very diversified. Approximately 80% of your net worth is in WWW common stock. Wolverine World Wide (Beta: 1.58, Sigma: 22.63%, Expected Return: 13.47%) 1. What is your 95% confidence interval for next year's returns in WWW common stock? (4pts) 2. If the 7 year Treasury bill has an expected return of 2.5%, and the S&P 500 returns 8.7% next year, how do you expect Wolverine World Wide to perform based on its Beta? (4pts) Starbucks: SBUX (Beta: 0.70, Sigma: 13.85%, Expected Return: 11.47%, Correlation to WWW: -0.15) 3. You decide to invest 20% of your investible assets into Starbucks: SBUX. Calculate the new portfolio risk. (8pts) 4. What is the new portfolio expected return? (3pts) 5. What is the new 95% confidence interval for the portfolio? (3pts) As CFO of Wolverine World Wide, your personal investments are not very diversified. Approximately 80% of your net worth is in WWW common stock. Wolverine World Wide (Beta: 1.58, Sigma: 22.63%, Expected Return: 13.47%) 1. What is your 95% confidence interval for next year's returns in WWW common stock? (4pts) 2. If the 7 year Treasury bill has an expected return of 2.5%, and the S&P 500 returns 8.7% next year, how do you expect Wolverine World Wide to perform based on its Beta? (4pts) Starbucks: SBUX (Beta: 0.70, Sigma: 13.85%, Expected Return: 11.47%, Correlation to WWW: -0.15) 3. You decide to invest 20% of your investible assets into Starbucks: SBUX. Calculate the new portfolio risk. (8pts) 4. What is the new portfolio expected return? (3pts) 5. What is the new 95% confidence interval for the portfolio? (3pts)