Can you help me with these three questions? Thank you!
You have just invested in a portfolio of three stocks. The amount of money that you invested in each stock and its beta are summarized below. Beta Stock A 1.54 Investment $204,000 306,000 510,000 B 0.66 C 1.18 Calculate the beta of the portfolio and use the Capital Asset Pricing Model (CAPM) to compute the expected rate of return for the portfolio. Assume that the expected rate of return on the market is 15 percent and that the risk-free rate is 8 percent. (Round beta answer to 3 decimal places, eg. 52.750 and expected rate of return answer to 2 decimal places, e.g. 52.75%.) Beta of the portfolio Expected rate of return % During the period from 2011 through 2015 the annual returns on small U.S. stocks were -3.30 percent, 1948 percent, 45.75 percent, 3.21 percent, and -3.60 percent, respectively. What would a $1 investment, made at the beginning of 2011, have been worth at the end of 2015? (Round answer to 3 decimal places, eg. 52.750.) Value in 2015 What average annual return would have been earned on this investment? (Round answer to 2 decimal places, eg. 52.75.) Average annual return percent per year. Sarah recently invested in real estate with the intention of selling the property one year from today. She has modeled the returns on that investment based on three economic scenarios. She believes that if the economy stays healthy, then her investment will generate a 30 percent return. However, if the economy softens, as predicted, the return will be 10 percent, while the return will be -25 percent if the economy slips into a recession. If the probabilities of the healthy, soft, and recessionary states are 0.7.0.2 and 0.1, respectively, then what are the expected return and the standard deviation of the return on Sarah's investment? (Round answers to 3 decimal places, e.g. 0.125 and round intermediate calculations to 5 decimal places, eg, 0.07680.) Expected return 20.500 Standard deviation