owing information whethe vested 40 percent in stock A, 25 percent in State of Probability of Economy State Economy Boom d deviation of a portfolio that is percent in stock Band 15 percent in stock Rate of Return i State Occus Stock Stock 09 16 10 1.1.11 percent b. 289 percent 3.46 percent d. 3.59 percent 401 percent 3. Tom O'Brien has a 2-stock portfolio with a total value of $100,000 $37,500 is invested in Stock A with a beta of 0.75 and the remainder is invested in Stock B with a beta of 1.42. What is his portfolio's beta! b. c. d. e. 1.17 1.23 1.29 1.35 1.42 5. Cooley Company's stock has a beta of 1.40. the risk-free rate is 4.25%, and the market risk premium is 5.50% What is the firm's required rate of return? a. 11.36% b. 11.65% c. 11.95% d. 12.25% e. 12.55% 7. Porter Ine's stock has an expected retum of 12.25%, a beta of 1.25, and is in equilibrium If the risk-free rate is 5.00%, what is the market risk premium? a. 5.80% b. 5.95% c. 6.09% d. 6.25% c. 6.40% Co. ( 3x)