nd o.20, respectively. The return and standard deviation of Citibank are 0.15 a expected return and standard deviation of Intel are 0.2 The covariance between twostocks is 0065 return and 3% of your portfolio in Citibank and 65% in Intel. The expected 5 and 0.35, respectively. Wh at are the expected return and standard deviation of your portfolio? a. Expected return is 0.215; standard deviation is 0.242. b. Expected return is 0.215; standard deviation is 0.294 C. Expected return is 0.2; standard deviation is 0.294 d. Expected return is 0.2; standard deviation is 0.242. 8. You hold a diversified portfolio consisting of a $5,000 investment in each of 20 common stocks. The portfolio beta equals to 1.15. You have decided to different sell one of your stocks, a lead mining stock whose b is equal to 1.o, for $5,000 net and to use the proceeds to buy $5,000 of stock in a steel company whose b is equal to 2.0. What will be the new beta of the portfolio? a. 1.12 b. 1.20 c. 1.22 d. 1.15 e. 2.00 9. The expected return on a stock with a beta of 1.025 is 12.74% and the risk-free rate is 4.61%. What is the market risk premium? a. 4.81% b. 9.24% c. 6.18% d. 5.95% e. 7.93% 10. Sip-n-Smoke common stock has a beta of 1.207. If the expected return on the market is 15.10% and the firm's expected return is 17.35%, what is the risk-free rate? a. 2.74% b. 3.38% c. 4.23% d. 5.49% e. 5.06%