I need expected return and standard deviation on high-tech, market, U.S. rubber,, t bills and collections.

Part 3 Financial Assets portfol 69,0.985, and s A, B, and Care currently in the portfolio; and their betas are 0.769, no respectively. Calculate the new portfolio's required return if it consists of 25% turzse an investor wants to include Bartman Industries'stock in his of Bartman 15% of Stock A, 40%, of Stock B, and 20%, of Stock C. TEGRATED CASE RILL FINCH INC. with a major in finance. You just landed a SK AND RETURN Assume that you recently graduated w ancial planner with Merrill Finch Inc, a large financial services corpor 100,000 for a client. Because the funds are to be invested in a business at the end ot graduat vet Iri- RI ration. Your first assignment is to you ave been r boss has restricted you to the investment alter n the folo Plan ro the bottomm of th s at e data; you will fill in the blanks later.) RETURNS ON ALTERNATIVE INVESTMENTS Estimated Rate of Return 2-Stock State of the Probability T-Bills Tech Collections U.S.Rubber Portfolio Portfolio (17.0%) 6.0%" (27,0%) 27.0% Recession Below average Average Above average 5,5% 5.5 45.0 (21.0) 10.5% 0.0 CV 0.87 Note that the estimated returns of U.S. Rubber do not always move in the same direction as the overall economy. For example when the economy is below average, consumers purchase fewer tires than they would if the economy were stronger. However, is y is in a flat out recession, a large number of consumers who were planning to purchase a new car may choose to wait and instead purchase new tires for the car they currently own. Under these circumstances, we would expect U.S. Rubber's stock price to be higher if there was a recession than if the economy was just below average Merrill Finch's economic forecasting staff has developed probability estimates for the state of the economy nd its security analysts have developed a sophisticated computer program, which was used to estimate the rate f return on each alternative under each st nc. collects past-due debts, and U.S. Rubber manufactures tires and various other rubber and plastics products ate of the economy. Hig Tech Inc. is an electronics firm, Collections errill Finch also ocks: you can invest in that portfolio and thus obtain average stock market results. Given t ribed, answer the following questions: maintains a "market portfolio" that owns a market-weighted fraction of all publicly traded lio and thus obtain average stock market results. Given the situation de- (1) Why is the T-bil's return independent of the state of the economy? Do T-bill promise a completely risk-free return? Explain. (2) Why are High Tech's returns expected to move with the economy, whereas Collections' are expected t move counter to the economy? Calculate the expected rate of return on each alternative and fill in the blanks on the row for f in the previou table. You should recognize that basing a decision solely on expected returns is appropriate only for risk-neutr individuals. Because your client, like most people, is risk-averse, the riskiness of each alternative is important aspect of the decision. One possible measure of risk is the standard deviation of returns (1). Calculate this value for each alternative and fill in theblank on the row for Din thetable. (2) What type of risk is measured by the standard deviation? (3) Draw a graph that shows roughly the shape of the probability distributions for High Tech, U.S. Rubb and T-bills