I need help answering the following problem set for corporate finance

Chapter 11 The expected return on HiLo stock is 14.08 percent while the expected return on the market is 11.5 percent. The beta of HiLo is 1.26. What is the risk-free rate of return? .41% 2.01% .69% 1.58% 1.62% Stock M has a beta of 1.2. The market risk premium is 7.8 percent and the risk-free rate is 3.6 percent. Assume you compile a portfolio equally invested in Stock M, Stock N, and a risk-free security that has a portfolio beta equal to the overall market. What is the expected return on the portfolio? 11.2% 10.8% 10.4% 11.4% 11.7% The stock of Big Joe's has a beta of 1.38 and an expected return of 16.26 percent. The risk-free rate of return is 3.42 percent. What is the expected return on the market? 7.60% 8.04% 9.30% 12.72% 12.16% There is a 15 percent probability the economy will boom; otherwise, it will be normal. Stock G should return 15 percent in a boom and 8 percent in a normal economy. Stock H should return 9 percent in a boom and 6 percent otherwise. What is the variance of a portfolio consisting of $3,500 in Stock G and $6,500 in Stock H? .000209 .000247 .002098 .037026 .073600 Kali's Ski Resort, Inc. stock is quite cyclical. In a boom economy, the stock is expected to return 30 percent in comparison to 12 percent in a normal economy and a negative 20 percent in a recessionary period. The probability of a recession is 15 percent while there is a 30 percent chance of a boom economy. The remainder of the time, the economy will be at normal levels. What is the standard deviation of the returns? 10.05% 12.60% 15.83% 17.46% 25.04% Stock A is expected to return 12 percent in a normal economy and lose 7 percent in a recession. Stock B is expected to return 8 percent in a normal economy and 2 percent in a recession. The probability of the economy being normal is 80 percent and the probability of a recession is 20 percent. What is the covariance of these two securities? .004203 .004115 .003280 .003876 .003915 Stock A is expected to return 14 percent in a normal economy and lose 21 percent in a recession. Stock B is expected to return 11 percent in a normal economy and 5 percent in a recession. The probability of the economy being normal is 75 percent with a 25 percent probability of a recession. What is the covariance of these two securities? .007006 .006563 .005180 .007309 .006274 Zelo stock has a beta of 1.23. The risk-free rate of return is 2.86 percent and the market rate of return is 11.47 percent. What is the amount of the risk premium on Zelo stock? 9.47% 12.60% 11.54% 10.59% 12.30% RTF stock is expected to return 10.6 percent if the economy booms and only 4.2 percent if the economy goes into a recessionary period. The probability of a boom is 55 percent while the probability of a recession is 45 percent. What is the standard deviation of the returns on RTF stock? 4.03% 2.97% 3.18% 3.69% 5.27% You have a $1,250 portfolio which is invested in Stocks A and B plus a risk-free asset. $350 is invested in Stock A which has a beta of 1.36 and Stock B has a beta of .84. How much needs to be invested in Stock B if you want a portfolio beta of .95? $803 $951 $782 $847 $791 Stock A has a variance of .1428 while Stock B's variance is .0910. The covariance of the returns for these two stocks is -.0206. What is the correlation coefficient? -.1505 -.1146 -.1480 -.1643 -.1807 A portfolio has 45 percent of its funds invested in Security One and 55 percent invested in Security Two. Security One has a standard deviation of 6 percent. Security Two has a standard deviation of 12 percent. The securities have a coefficient of correlation of .62. What is the portfolio variance? .006946 .007295 .007157 .008104 .007506 Stock A has a beta of .69 and an expected return of 9.27 percent. Stock B has a 1.13 beta and an expected return of 11.88 percent. Stock C has a 1.48 beta and an expected return of 15.31 percent. Stock D has a beta of .71 and an expected return of 8.79 percent. Lastly, Stock E has a 1.45 beta and an expected return of 14.04 percent. Which one of these stocks is correctly priced if the riskfree rate of return is 3.6 percent and the market rate of return is 10.8 percent? Stock A Stock B Stock C Stock D Stock E A portfolio consists of Stocks A and B and has an expected return of 11.6 percent. Stock A has an expected return of 17.8 percent while Stock B is expected to return 8.4 percent. What is the portfolio weight of Stock A? 29.87% 61.98% 32.58% 34.04% 67.42% Stock S is expected to return 12 percent in a boom, 9 percent in a normal economy, and 2 percent in a recession. Stock T is expected to return 4 percent in a boom, 6 percent in a normal economy, and 9 percent in a recession. There is a 10 percent probability of a boom and a 25 percent probability of a recession. What is the standard deviation of a portfolio which is comprised of $4,500 of Stock S and $3,000 of Stock T? 1.4% 1.9% 2.6% 5.7% 7.2% Stock A has a beta of 1.2, Stock B's beta is 1.46, and Stock C's beta is .72. If you invest $2,000 in Stock A, $3,000 in Stock B, and $5,000 in Stock C, what will be the beta of your portfolio? 1.008 1.014 1.038 1.067 1.127 The common stock of CTI has an expected return of 14.48 percent. The return on the market is 11.6 percent and the riskfree rate of return is 3.42 percent. What is the beta of this stock? .95 1.49 1.31 1.42 1.35 You would like to combine a risky stock with a beta of 1.87 with U.S. Treasury bills in such a way that the risk level of the portfolio is equivalent to the risk level of the overall market. What percentage of the portfolio should be invested in the risky stock? 54.15% 53.48% 55.09% 52.91% 54.67% You want to design a portfolio has a beta of zero. Stock A has a beta of 1.69 and Stock B's beta is also greater than 1. You are willing to include both stocks as well as a risk-free security in your portfolio. If your portfolio will have a combined value of $5,000, how much should you invest in Stock B? $2,630 $0 $2,959 $3,008 $1,487 You recently purchased a stock that is expected to earn 12.6 percent in a booming economy, 8.9 percent in a normal economy and lose 5.2 percent in a recessionary economy. Each economic state is equally likely to occur. What is your expected rate of return on this stock? 6.47% 8.90% 5.43% 7.65% 7.01%