please answer question

1. Use the following information to answer the questions.

Security	Beta	Standard Deviation	Expected return
S&P 500 Risk-free security Stock D Stock E Stock F	1.0 0.0 ( ) 0.8 ( )	20% 0% 30% 15% 25%	10.0% 4.0% 13.0% ( )% ( )%

1. Figure out the market risk premium using both S&P 500 and the risk-free security.
2. Figure out a beta for Stock D and an expected return for Stock E using the CAPM equation.
3. Stock F has a correlation with S&P 500 of 0.6 while the standard deviation of Stock F is 25% and the standard deviation of S&P is 20%. Figure out a beta for Stock F.
4. If Stock F has an expected return of 12%, figure out the abnormal return, alpha (), based on CAPM and the beta you figure out in Question 3) (If you would like, you can use a beta of 1 instead.).
5. You form a complete portfolio by investing $8,000 in S&P 500 and $2,000 in the risk-free security. Given the information about S&P 500 and the risk-free security on the table, figure out an expected return, a standard deviation, and a beta for the complete portfolio.

6) A complete portfolio of $1,000 is composed of the risk-free security and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 80% and 20% respectively. Given the risk-free rate of 4%. X has an expected return of 10%, and Y has an expected return of 12%.

a) Figure out an expected return for the risky portfolio, P.

b) To form a complete portfolio with an expected return of 7.2%, how much should you invest in risk-free security, securities X and Y, respectively?

Variance-Covariance matrix
	Stock H	Stock I	Stock J
Stock H	0.0169
Stock I	0.0026	0.0400
Stock J	0.0156	0.0090	0.0225

2. Use the following information to answer the questions.

You form two portfolios. You form Portfolio A by investing $2,000 in Stock H and $8,000 in Stock I while you form Portfolio B by investing $4,000 in Stock I and $6,000 in Stock J.

1. Given expected returns of 0.06, 0.10, and 0.12 for Stocks H, I, and J respectively, Figure out the expected return for Portfolios A and B.
2. Figure out the variance for Portfolios A and B.
3. Given the risk free rate of 0.04, figure out the Sharpe ratio for Portfolios A and B. Which portfolio is better based on the Sharpe ratio?