Points as marked (10 Points Total) Q1) There is a 38.90% probability of a below average economy and a 61.10% probability of an average economy. If there is a below average economy stocks A and B will have retums of 6.80% and 7.70%, respectively. If there is an average economy stocks A and B will have retums of 16.70% and 2.00%, respectively. Compute the: a) Expected Retum for Stock A (0.75 points): b) Expected Retum for Stock B (0.75 points): c) Standard Deviation for Stock A (0.75 points): d) Standard Deviation for Stock B (0.75 points): Q2) There is a 26.90% probability of an average economy and a 73.10% probability of an above average economy. You invest 29.00% of your money in Stock S and 71.00% of your money in Stock T. In an average. economy the expected returns for Stock S and Stock T are 11.30% and 6.40%, respectively. In an above average economy the the expected retums for Stock S and T are 25.90% and 14.00 %, respectively. What is the expected retum for this two stock portfolio? (2 points) Q3) You are invested 11.70% in growth stocks with a beta of 1.63, 19.30% in value stocks with a beta of 1.01, and 69.00% in the market portfolio. What is the beta of your portfolio? (1 point) Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 0.71; expected retum on the Market = 8.50%; expected return on T-bills = 3.80%; current stock Price = $8.03; expected stock price in one year = $10.34; expected dividend payment next year = $3.33. Calculate the a) Required return for this stock (1 point): b) Expected retum for this stock (1 point) Q5) The market risk premium for next period is 6.60% and the risk-free rate is 3.50%. Stock Z has a beta of 0.84 and an expected retum of 13.80%. What is the: a) Market's reward-to-risk ratio? (1 point): b) Stock Z's reward-to-risk ratio (1 point): Enter Answers Correct Answers Below Below FIRST NAME LAST NAME INSTRUCTIONS For the final answers, round your answer to the nearest 4 decimal places (3 decimals for the reward- to-risk ratio and 2 for the beta-coefficient). If you need to use a calculated number for further calculations, DO NOT round until after all calculations have been completed