En$.$ Haris is considering investing in a portfolio containing stocks for Jati Corporation, Mayang Corporation and Inai Corporation. The current market risk premium is $8$ percent and the risk free rate is $4$ percent. The following information shows the rate of return on the three stocks under three different economic situations.

$\backslash$table$[[\backslash$table$[[$State of$],[$Economy$]],\backslash$table$[[$Probability of$],[$State of$],[$Economy$]],$Rate of Return if State Occurs$],[$Jati Corp.,Mayang Corp.,Inai Corp.,$],[$Bust$,0\mathrm{.}15,0,-0\mathrm{.}2,-0\mathrm{.}4],[$Normal$,0\mathrm{.}5,0\mathrm{.}17,0\mathrm{.}15,0\mathrm{.}10],[$Boom$,0\mathrm{.}35,0\mathrm{.}24,0\mathrm{.}35,0\mathrm{.}50]]$

Required:

a$)$ Calculate the expected return on a portfolio that En$.$ Haris invested in each of the three stocks.

$(6$ marks$)$

b$)$ Compute the variance and standard deviation for each of the three stocks.

$(12$ marks$)$

c$)$ Using the CAPM equation, calculate the Beta $()$ of each of the three stocks. Which of the stocks is the most risky?

$(7$ marks$)$