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Calculate the expected return for each of the investment alternatives. Calculate the standard deviation (SD) for each of the investment alternatives. Calculate the coefficient of

  1. Calculate the expected return for each of the investment alternatives.
  2. Calculate the standard deviation (SD) for each of the investment alternatives.
  3. Calculate the coefficient of variation (CV) for each of the investment alternatives.
  4. Assume a two-stock portfolio with $50,000 in Ultra Inc Inds. and $50,000 in Repo Men. Calculate portfolio return and portfolio standard deviation.
  5. If someone invests 25%, 40%, 25%, and 10% of his/her investment on T-Bill, Ultra Inc, Repo, American Foam respectively, calculate the portfolio return and portfolio standard deviation.
  6. If the market risk premium is 7% and beta for Ultra Inc is 1.5, what is the required rate of return?
  7. If the beta for Ultra Inc is 1.5 and beta for Repo is .75, and you invest 50% of your total investment in Ultra Inc and rest 50% on Repo, what is the beta of your portfolio?
  8. Econ.

    Prob.

    T-Bill

    Ultra Inc

    Repo

    American Foam

    Market

    portfolio

    Very week

    0.1

    8%

    -22%

    28%

    10%

    -13%

    Below average

    0.2

    8

    -2

    14.7

    -10

    1

    Average

    0.4

    8

    20

    0

    7

    15

    Above average

    0.2

    8

    35

    -10

    45

    29

    Strong

    0.1

    8

    50

    -20

    30

    43

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