Assume you are investing 40% of your money in Stock A, and 60% in Stock B. Betas for Stock A is 1.2, and for Stock B is 0.8.

Probability | Stock A | Stock B

0.53 | 13% | 22%

0.47 | 18% | 10%

1. The expected return for Stock A is: a. 15.35%. b. 16.36%. c. 17.25%. d. 18.27%.

2.The coefficient variation for Stock B is: a. 0.16. b. 0.37. c. 2.73. d. 6.15.

3.The covariance between Stock A and Stock B is: a. +1.0. b. +0.75. c. -0.00149 d. -1.0.

4.The expected rate of return for the portfolio is: a. 15.35%. b. 15.96%. c. 16.36%. d. 17.42%.

5.The beta for the portfolio is: a. 0.96. b. 0.78. c. 1.10. d. 1.20.

6.The standard deviation for the portfolio is: a. 0.000674. b. 0.025953. c. 0.000623. d. 0.059892.