i am having doubts in the entire paper. please help me with this homework

Homework #2 Oomplete all five problems below. The homework will be graded mostly based on completeness (refer to the syllabus for details) _ Show your work. You may work with other students, but you must submit your own work Please do not copy somebody' s homework as we will be checking for that Remember to include both your name and section number (10:30 = 002; 1 = 003; 3:00 = 004). Problem 1 : 500 Index Las Ve as Sands col ate CL vs Pric 03/2012 1400 53 52 96 Price 03/2013 1560 73 54 114 Beta 10 3.65 0.45 Standard Deviation 14.010/0 15 7% 182% (a) (b) (c) (d) (e) Explain why the beta estimates make sense intuitively. Hint! Why does LVS a high beta? etc. Assume the CAPM is correct. How should you invest? Do you need more information to answer this question? Which stock has the highest expected retum according to the CAPM? Why? Plot all the stocks and the S&P on the SNIL_ The risk free rate is 2% and the expected return on the market is 10% Consider a portfolio that allocates 25%, 40% and 35% to HNZ: LVS and CL respectively. Wiat is the beta of this portfolio? What is the expected return (use the CAPM)? What is the expected return on the portfolio in (d) using historical information instead of the CAPM? CL has a higher standard deviation than HNZ_ Is this consistent with the CAPM? Why or why not? Problem 2: Assume the risk free rate is 6% and the market risk premium is 7.5% Unlimited Corp. (RUC) has a beta of 4, and it offers a retum of 27% at the moment. Is RUC fairly priced according to the CAPM? Why or why not? If the price is not fair, what does the CAPM say will happen to the price of RUC stock?