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I ONLY NEED THE WORK AND ANSWER TO #8 PLEASE. Based on the following data; calculate the average return and the standard deviation of returns

I ONLY NEED THE WORK AND ANSWER TO #8 PLEASE.

  1. Based on the following data; calculate the average return and the standard deviation

of returns for Stock X. (From Chapter 10)

YEAR Stock X Rate of Return

201a -5%

201b 15%

201c 20% 201d 30%

  1. Based on the following data; calculate the expected return and the standard deviation of

returns for each stock. (From Chapter 11)

State of the Economy Probability Stock A Rate of Return Stock B Rate of Return

Recession 0.25 6% -20%

Normal Growth 0.45 7% 13%

Boom 0.3 11% 33%

  1. Based on the following data; (a) calculate the expected return and the standard deviation of returns for each stock.

State of the Economy Probability Stock A Rate of Return Stock B Rate of Return

Recession 0.2 4% -20%

Normal Growth 0.65 8% 20%

Boom 0.15 16% 60%

(b) Calculate the expected return and the standard deviation on the portfolio, where

the portfolio is formed by investing 50% of the funds in Stock A and the rest in Stock B.

(c) Calculate the expected return and the standard deviation on the portfolio, where

the portfolio is formed by investing 70% of the funds in Stock A and the rest in Stock B.

(From Chapter 11)

4. A firms stock has a beta of 0.9; the expected return on the market is 10%; and the risk-free rate is 5%. What is the expected rate of return on this stock? (From Chapter 11)

5. A firms stock has a beta of 1.2; the expected return on the market is 14%; and the risk-free rate is 4%. What is the expected rate of return on this stock (From Chapter 11)

6. The expected return on the market is 14%; and the risk-free rate is 5%. What is the market risk premium? (Note: Market Risk Premium = (Market rate of return Risk-free rate) (From Chapter 11)

7. A firms stock has a beta of 1.4; the risk-free rate is 5%; and the market risk premium is 10%.

What is the expected rate of return on this stock? (From Chapter 11)

8. Given that the beta of Stock A is 1.35 and the beta of Stock B is 0.75; then calculate the beta of a portfolio where 60% of the funds are invested in Stock A and 40% in Stock B (From Chapter 11)

I ONLY NEED THE WORK AND ANSWER TO #8 PLEASE.

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