Given the following information:

FirmPortfolio WeightVolatilityCorrelation with Market Portfolio

Walmart0.2514%0.7

Exxon Oil0.3518%0.6

Red Metal0.415%0.5

The market portfolio's expected return is 15% with a volatility of 10%, and the risk-free

rate of interest is 5%. Using this information for question 9-question 10

Question 9

What is the expected return for Exxon Oil?

Group of answer choices

13.4%

12.6%

15.0%

15.8%

Question 10

The expected return on the portfolio of the above three stocks is closest to:

Group of answer choices

14.2%

12.8%

11.4%

10.0%