Question $1$

$25$ pts

You plan to invest in Alphabet Inc. Use the CAPM to find the expected rate return on this stock. The required return of the market is $11\%$ and the return on a risk$-$free asset is $3\mathrm{.}8\%.$ PayPal's Beta $=0\mathrm{.}8$ and projects operating income of $$7,086,627.$ Enter your answer as a percentage with two decimals, for example, for $12\mathrm{.}54\%$ enter $12\mathrm{.}54$ only.

Question $2$

$25$ pts

Fair Financial Group is planning to invest in PayPal Inc. The required return on this stock is $15\mathrm{.}39\%.$ The expected return of the market is $8\mathrm{.}5\%$ and the risk$-$free rate equals $2\mathrm{.}26\%.$ Using the CAPM, estimate the amount of systematic risk in this firm $($Hint: Beta$).$ Round your answer to two decimals.

Question $3$

$25$ pts

Your investment portfolio includes three stocks. $40\%$ is invested in Stock $A,$ which has an expected return $E(K)=10\%.$ Stock $B$ has a $30\%$ weight and $E(K)=17\%.$ Stock C has a $30\%$ weight and $E(K)=18\mathrm{.}2\%.$ What is the expected return on this investment? Enter your answer as a percentage number, for example, if your answer is $9\mathrm{.}35\%,$ enter $9\mathrm{.}35$ only.