Given the following recorded historical performance of Investments, which would be your choice in terms of expected returns to be generated?

Period	A	B	C	D
1	8%	(2%)	(5%)	2%
2	12%	5%	15%	3%
3	5%	7%	18%	1%
4	6%	5%	12%	2%
5	(3%)	7%	(2%)	3%

Problem 2:

The Investor had the following data on returns of the 3 investments he had undertaken as follows:

Condition	Probability	A	B	C
Boom	40	14%	5%	(2%)
Normal	35	5%	3%	6%
Depression	25	(4%)	2%	10%

Required: Compute the following values for each Investment

2.1 Expected Return

2.2 Standard Deviation

2.3 Coefficient of Variation

Problem 3:

Given the following information below on stocks as Investments, supply the missing data to rearrange them in accordance to the required rate of return.

	Risk Free Rate	Market Return	Beta	CAPM
A	2%	???	1.50	10%
B	3%	15%	???	12%
C	5%	12%	.75	???
D	???	14%	.80	8%
E	2%	10%	(-1.10)	???

Problem 4:

Portfolio	Amount	Return	Beta
A	250,000	5%	1.5
B	500,000	10%	1.0
C	800,000	12%	(.5)
D	1,250,000	(2%)	.5

1. Portfolio Return
2. Portfolio Beta