For the next three questions, ASSUME that you hold a portfolio of three stocks: Tesla, APPLE and Reitmans. The relevant information includes: TESLA APPLE Reitmans Arithmetic Mean 100% 20% 10% 200% 30% 20% Standard Deviation Proportion of Portfolio Correlation: 2096 30% 50% TESLA & APPLE -0.30 Correlation: TESLA & Reitmans 0.00 Correlation: APPLE & Reitmans +0.10 Answer format e.g. XX.X% = XX.X. 12.3% = 12.3 (no % sign, only 1 decimal place) What return would you expect next year for the portfolio (comprised of 20% Tesla, 30% APPLE and 50% Reitmans)? Using the Variance/Covariance matrix provided on the last page of the formula sheet, calculate the standard deviation of the portfolio (comprised of 20% Tesla, 30% APPLE and 50% Reitmans). Which stock adds the most risk to the portfolio? Apple Reitmans O Tesla According to Yahoo Finance, APPLE has a Beta of 0.8. If the yield on Treasury bills is 4% and the appropriate market risk premium is 5%, what return would you expect from holding APPLE stock