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Q1.Investor Corporation has a $195,000 stock portfolio.$60,000 is invested in a stock with a beta of 1.35 and the remainder is invested in a stock

Q1.Investor Corporation has a $195,000 stock portfolio.$60,000 is invested in a stock with a beta of 1.35 and the remainder is invested in a stock with a beta of 2.85.These are the only two investments in the portfolio.What is the portfolio's beta?

Q2.ABC Company's stock has a beta of 2.25, the risk-free rate is 3.25%, and the market risk premium is 7.50%.What is ABC's required rate of return using CAPM?

Q3.Scenario Modeler's prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 7% return, and a 20% chance of producing a -20% return.What is the firm's coefficient of variation of return?

Q4.High Growth's annual stock returns over the last 7 years are:27%, -18%, 34%, 11%, -28%, 55%, and -35%.What is High Growth's standard deviation of return?

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