AYU week 7 Risk and Return Due 11/1/23 1. Given the data below calculate the expected return and standard deviation for a portfolio that is constructed by investing 50% in each stock. Discuss the results of your portfolio with that of the individual stocks with the data given below. If the risk-free rate is 3% and the market risk premium is 7% - are either of these stocks or the portfolio of stocks a good investment? Why? 2. ABC's stock is currently priced at $100 in the marketplace and is fuirly valued. This means that the market price - the intrinsic value. The stock does not pav a dividend. What is the expected value of the stock 1 year from today if the betu of the stock is 1.4 , the risk-free rate is 3% and the market risk premium is 6% ? For this analysis, assume that CAPM perfectly prediets the total return