Hi Tutor, I do really need your assistance for my MT480 Assignment for Unit 3 and Unit 4. Thanks, Torch

________________________________________________________________________ Problem 7.4 (Essay) 1. Describe the general relation between risk and return that we observe in the historical bond and stock market data. Problem 7.14 2. The distribution of grades in an introductory finance class is normally distributed, with an expected grade of 69. If the standard deviation of grades is 9, in what range would you expect 95 percent of the grades to fall? (Round answer to 2 decimal places, e.g. 15.25.) Number of Standard Deviations Fraction of from the Mean Total Observations 1.000 68.26% 1.645 90% 1.960 95% 2.575 99% (Hint: Think in terms of what the expected highest and lowest scores would be for 95% of the students taking the exam.) Range _________________________________________________________________________ Problem 7.20 3. Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 12.10 percent and 18.40 percent, respectively. (Round answer to 4 decimal places, e.g. 0.0768.) Probability Return(A) Return(B) Good 0.35 0.30 0.50 Ok 0.51 0.10 0.10 Poor 0.14 0.25 0.30 Covariance Problem 7.24 4. Damien knows that the beta of his portfolio is equal to 1, but he does not know the riskfree rate of return or the market risk premium. He also knows that the expected return on the market is 8 percent. What is the expected return on Damien's portfolio? Expected return % Problem 7.26 5. The market risk premium is 9.00 percent, and the riskfree rate is 4.80 percent. If the expected return on a bond is 10.30 percent, what is its beta? (Round answer to 2 decimal places, e.g. 15.25.) Beta (bond) _____________________________________________________________________________ _______