Please fill in the BLANKS and in an attached wrd document please show your work.

1) Using the table ABOVE, calculate the return for investing in Boeing stock (BA) from January 2, 2008, to January 2, 2009, and also from January 3, 2011, to January 3, 2012, assuming all dividends are reinvested in the stock immediately. (a) Return from January 2, 2008, to January 2, 2009 is ___% (b) Return from January 3, 2011, to January 3, 2012 is ___% 2. Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown above, with a correlation of 20%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that consists of a long position of $11,500 in Johnson & Johnson and a short position of $1,500 in Walgreens. A) Calculate the expected return, the expected return is __% (round to one decimal place) B) Calculate the volatility (standard deviation) the volatility is __% (round to one decimal place) 3. You are currently only invested in the Natasha Fund (aside from risk-free securities). It has an expected return of 13% with a volatility of 18%. Currently, the risk-free rate of interest is 3.8%. Your broker suggests that you add Hannah Corporation to your portfolio. Hannah Corporation has an expected return of 19%, a volatility of 59%, and a correlation of 0 (zero) with the Natasha Fund. a. Calculate the required return of Hannah stock and select an answer (yes or no) i. The required return of Hannah stock is ___% (Round to one decimal place.) ii. Select one: Is your brokerright? YES because the expected return of Hannah stock exceeds the required return. NO because the expected return of Hannah stock exceeds the required return b. You follow your broker's advice and make a substantial investment in Hannah stock so that, considering only your risky investments, 61% is in the Natasha Fund and 39% is in Hannah stock. When you tell your finance professor about yourinvestment, he says that you made a mistake and should reduce your investment in Hannah. Recalculate the required return on Hannah stock. (Round all intermediate values to five decimal places asneeded.) i. ii. The required return of Hannah stock is ___% (Round to one decimal place.) Select One: Is your finance professor right? YES, because the expected return of Hannah stock is less than the required return. NO, because the expected return of Hannah stock is less than the required return. c. You decide to follow your finance professor's advice and reduce your exposure to Hannah. Now Hannah represents 13.328% of your risky portfolio, with the rest in the Natasha fund. Recalculate the required return on Hannah stock.(Round all intermediate values to five decimal places as needed.) i. ii. The required return of Hannah stock is _____% (Round to one decimal place.) Select one: Is this the correct amount of Hannah stock to hold? YES,because now the required and expected returns are very similar. NO, because now the required and expected returns are very similar. d. Calculate the Sharpe ratio of each of the three portfolios. What portfolio weight in Hannah stock maximizes the Sharpe ratio? i. ii. iii. iv. v. The volatility of portfolio (b) is _______. (Round to five decimal places.) The volatility of portfolio (c) is _______. (Round to five decimal places.) The Sharpe Ratio for portfolio (a) ______. (Round to three decimal places.) The Sharpe Ratio for portfolio (b) _______. (Round to three decimal places.) What portfolio weight in Hannah stock maximizes the Sharpe ratio? The Sharpe Ratio is maximized at ____% in Hannah Stock 4. IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment, and must estimate its cost of capital. You find the following data above for a publicly-traded firm in the same line of business: By making some realistic assumptions, estimate the project's beta. The estimated project's beta is _____ % (Round to two decimal places.) 5. You are currently considering an investment in a project in the energy sector. The investment has the same riskiness as Exxon Mobil stock (ticker: XOM). Using the data in Table 1 shown below and Table 2 shown below: calculate the cost of capital using the FFC factor specification if the current risk-free rate is 3.0% per year. The cost of capital using the FFC factor specification is ______% (Round to two decimal places.)