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For the coming year you have determined that the following possibilities are most likely for stock A: Economic State Probability Return Good 0.60 12 Bad

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For the coming year you have determined that the following possibilities are most likely for stock A: Economic State Probability Return Good 0.60 12 Bad 0.40 -9 What is the expected return for stock A? answer format: show your answer in percent (without the % sign) and to 1 decimal place. For example, 12.56 should be shown as 12.6 Your Answer: Answer For the coming year you have determined that the following possibilities are most likely for stock A: Economic State Probability Return Good 0.60 28 Bad 0.40 -4 What is the standard deviation for stock A? answer format: show your answer in percent (without the % sign) and to 1 decimal place. For example, 12.56 should be shown as 12.6 Your Answer: Answer The risk-free rate is 1% and the market risk premium is 5%. What is the required return on a portfolio of stocks A and B given the information below: Stock Weight Beta 30% 0.6 B 70% 1.7 answer format: show your answer in percent (without the % sign) and to 1 decimal place. For example, 12.56 should be shown as 12.6 Your Answer: Answer You are managing a mutual fund with the following stocks: Stock Investment Beta A $4,239 -0.7 B $2,692 -0.8 What is the beta for this mutual fund (i.e. what is the portfolio beta)? answer format: show your answer to 1 decimal place. Your

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