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FINANCE questions. Thank you! I have the questions listed in the attachment. FIN 260 Prof. Col Assignment 4 1) What is the expected return on

FINANCE questions. Thank you! I have the questions listed in the attachment.

image text in transcribed FIN 260 Prof. Col Assignment 4 1) What is the expected return on a portfolio that is equally weighted between stocks K and L given the following information? (8 pts) 2) What is the expected return and standard deviation of a portfolio that is invested in stocks A, B, and C? Twenty five percent of the portfolio is invested in stock A, 40 percent is invested in stock C, and the remaining is invested in stock B. (20 pts) 3) A stock has an expected return of 11 percent, the riskfree rate is 5.2 percent, and the market risk premium is 5 percent. What is the stock's beta? (5 pts) 4) You own a portfolio equally invested in a riskfree asset and two stocks. One of the stocks has a beta of 1.9 and the total portfolio is equally as risky as the market. What is the beta of the second stock? (5 pts) 5) Which one of the following stocks is correctly priced based on CAPM if the riskfree rate of return is 3.7 percent and the market risk premium is 8.8 percent? (12 pts)

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