Miscellaneous on risk and return

a) Professor Paolo is considering how to invest his savings. His mom suggested to invest 55% of his savings in the stock of Energy & Empire (EE), and to invest 20% in treasury bills (TB) and finally, the remaining in Apple (A), Given Professor Paolo's portfolio allocation, what rate of return would he expect to receive on his investment? Memo: EE, TB and A are paying 10%, 2%, and 14% respectively.

b) Roxanne Corporation, growing soccer- gear company, wishes to determine the required return on asset Z, which has a beta of 1.5. the risk-free rate of return is 7%; the return on the market portfolio of assets is 11%. What is the expected yield of return?

c) Paolo's addicts wishes to determine the return on two if its video machines, Conqueror and demolition. Conqueror was purchased 1 year ago for $20,000 and currently has a market value of $21,500. During the year, it generated $800 worth of after-tax receipts. Demolition was purchased 4 years ago, its value in the year just completed declined from $12,000 to $11,800. During the year, it generated $1,700 of after-tax receipts.