Q1) There is a 36.00% probability of a below average economy and a 64.00% probability of an average economy. If there is a below average economy stocks A and B will have returns of 2.30% and 10.10%, respectively. If there is an average economy stocks A and B will have returns of 14.60% and -1.80%, respectively. Compute the: a) Expected Return for Stock A (0.75 points): b) Expected Return 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 17.90% probability of an average economy and a 82.10% probability of an above average economy. You invest 34.50% of your money in Stock S and 65.50% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 6.90% and 5.10%, respectively. In an above average economy the the expected returns for Stock S and T are 29.30% and 16.40%, respectively. What is the expected return for this two stock portfolio? (2 points) Q3) You are invested 35.90% in growth stocks with a beta of 1.74, 22.90% in value stocks with a beta of 1.18, and 41.20% 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 = 1.03; expected return on the Market = 10.80%; expected return on T-bills = 3.40%; current stock Price = $7.52; expected stock price in one year = $12.08; expected dividend payment next year = $1.82. Calculate the a) Required return for this stock (1 point): b) Expected return for this stock (1 point): Q5) The market risk premium for next period is 9.50% and the risk-free rate is 1.00%. Stock Z has a beta of 0.70 and an expected return of 11.60%. What is the: a) Market's reward-to-risk ratio? (1 point): b) Stock Z's reward-to-risk ratio (1 point)