Hello I need help with number 10. It is an investments finance class.

Exam 2 Review Questions Return AAPL MMM XOM Beta Variance (Return) Variance (Residual) 0.15 0.11 0.07 1.8 1.1 0.5 0.09 0.05 0.02 0.00900 0.01975 0.01375 1. If the expected market return is 8% and the T-Bill rate is 2%, what is the expected return on these three stocks? 2. Given #1, what is the expected alpha for these stocks? 3. If the expected market return is 10% and the T-Bill rate is 1%, what is the expected return on these three stocks? 4. Given #3, what is the expected alpha for these stocks? 5. If the expected market return is 12% and the T-Bill rate is 3%, what is the expected return on these three stocks? 6. Given #5, what is the expected alpha for these stocks? 7. If the expected market return is 11% and the T-Bill rate is 1%, are these stocks over or under valued? 8. If the expected market return is 9% and the T-Bill rate is 1%, are these stocks over or under valued? 9. If the expected market return is 13% and the T-Bill rate is 3%, are these stocks over or under valued? 10. Assume the expected market return is 9%, its variance is 0.025, and the T-Bill is 1% and you form a portfolio the following portfolio weights: -20% AAPL, 80% MMM, and 40% XOM. What are the following portfolio characteristics? a. Expected Return: b. Expected Alpha: c. Expected Beta: d. Residual Risk: e. Total Risk: 11. Assume the expected market return is 9%, its variance is 0.025, and the T-Bill is 1% and you form a portfolio the following portfolio weights: -40% AAPL, 90% MMM, and 50% XOM. What are the following portfolio characteristics? a. Expected Return: b. Expected Alpha: c. Expected Beta: d. Residual Risk: e. Total Risk: 12. Assume the expected market return is 9%, its variance is 0.025, and the T-Bill is 1% and you form a portfolio the following portfolio weights: -30% AAPL, 40% MMM, and 90% XOM. What are the following portfolio characteristics? a. Expected Return: b. Expected Alpha: c. Expected Beta: d. Residual Risk: e. Total Risk: 13. Assume the expected market return is 10%, its variance is 0.025, and the T-Bill is 2%. Form the optimal risky portfolio using the market and these three stocks. Report the weights for the active and passive portfolios, as well as the expected return and variance of the optimal risky portfolio. 14. Assume the expected market return is 10%, its variance is 0.025, and the T-Bill is 2%. Additionally, assume the return on XOM is 8%, its beta is 0.6, its variance(returns) is 0.02, and its variance(residual) is 0.011. Form the optimal risky portfolio using the market and these three stocks. Report the weights for the active and passive portfolios, as well as the expected return and variance of the optimal risky portfolio. Return AAPL MMM XOM Beta Variance (Return) 0.14 0.10 0.09 1.4 1.1 0.9 Variance (Residual) 0.080 0.055 0.025 15. Assume the expected market return is 8%, the variance of the market is 0.02, and the T-Bill rate is 2%. What is the residual variance for each of these three stocks? 16. What is the R2 of the beta estimation for all three stocks? 17. Assume the expected market return is 8%, its variance is 0.02, and the T-Bill is 2%. Form the optimal risky portfolio using the market and these three stocks. Report the weights for the active and passive portfolios, as well as the expected return and variance of the optimal risky portfolio. Return AAPL MMM XOM Beta Variance (Return) 0.12 0.11 0.08 1.4 1.1 0.9 Variance (Residual) 0.06 0.045 0.02 18. Assume the expected market return is 8%, the variance of the market is 0.02, and the T-Bill rate is 2%. What is the residual variance for each of these three stocks? 19. What is the R2 of the beta estimation for all three stocks? 20. Assume the expected market return is 8%, its variance is 0.02, and the T-Bill is 2%. Form the optimal risky portfolio using the market and these three stocks. Report the weights for the active and passive portfolios, as well as the expected return and variance of the optimal risky portfolio. Return Beta Variance Variance (Return) AAPL MMM XOM 0.15 0.11 0.07 1.8 1.1 0.5 (Residual) 0.09 0.05 0.02 0.00900 0.01975 0.01375 21. Assume the expected market return is 9%, the market variance is 0.025, and the T-Bill rate is 3%. For a portfolio with the following weights: 70% in AAPL, 15% in MMM, 15% in XOM. Form a zero-beta portfolio and report the weights in the active and passive portfolios as well as the alpha for the zero-beta portfolio. Return AAPL MMM XOM Beta Variance (Return) 0.14 0.10 0.09 1.4 1.1 0.9 Variance (Residual) 0.080 0.055 0.025 22. Assume the expected market return is 9%, the market variance is 0.025, and the T-Bill rate is 3%. For a portfolio with the following weights: 60% in AAPL, 20% in MMM, 20% in XOM. Form a zero-beta portfolio and report the weights in the active and passive portfolios as well as the alpha for the zero-beta portfolio