Financial analysts have estimated the returns on shares of the Woods Corporation and the overall market portfolio under two economic states nature

as follows. For Woods the state dependent returns are $-0\mathrm{.}01$ in recession, and $0\mathrm{.}06$ in an economic boom. For the market the state dependent returns

are $-0\mathrm{.}06$ in recession, and $0\mathrm{.}12$ in boom. The analyst estimates that the probability of a recession is $0\mathrm{.}50$ while the probability of an economic boom

is $0\mathrm{.}50.$

Calculate the beta of Woods.

State your answer in decimal form, working your analysis using at least four decimal places of accuracy. You may attempt this question $3$ more times for credit.

Financial analysts have estimated the returns on shares of Drucker Corporation and the overall market portfolio under various economic conditions

as follows. The return for Drucker in the following three economic states of nature are forecasted to be: $-18\%$ in recession, $+11\%$ in moderate growth,

and $+36\%$ in a boom. Estimates for the market as a whole in the same economic states are $-8\%$ in recession, $+7\%$ in moderate growth, and $+24\%$ in

boom. The analyst considers each state to be equally likely.

What is the expected return for Drucker Corporation?

$\%$

What is the expected return of the market?

$\%$

Place your answers in percentage form $($NOTE: NOT DECIMAL FORM$)$ using two decimal places and no percentage sign. For example, an answer

of five point five five percent would be entered $5\mathrm{.}55.$