QUESTION 1 What is the standard deviation of the retums on a 5500 000 portfolio which consists of socks A and B The market value of Stock Ais $200 000 Return if State Occurs State of Economy Probability of State of Economy Stock A Stock Boom 30% 25% 8% Normal 45% 89 Recession 25% -4% To answer this question you will need to show how you worked through the problem Cick Browse My Compuur to attach a file (a Word document or image file) that shows your work. Selected Answer: Final Awwer docx Remove Attach File Browse My Computer QUESTION 2 ABC Inc. has provided return of 6%, 12% -16% 45,8%, 3%-5%, 8% -11%, and 14% over the past ten years Compute the arithmetic and geometric means of the retums. What was the standard deviation of the returns ? To answer this question you will need to show how you worked through the problem. Click "Browse My Computer to attach a flea Word document or image fle) that shows your work Selected Answer Finals 2.docx Remove Attach File Browse My Computer QUESTION Discuss three strengths and three weaknesses of the Capital Asset Pricing Model (CAPM) when its applied to calculate the expected retum on a stock. Click "Browse My Computer to attach a file a Word document or image file) that answers this question Selected Answer: Final Andocx Remove Attache Browse My Computer QUESTION 4 Stock A has a standard deviation of returns of 15% and a beta of 1.8 Stock Bhas a standard deviation of retums of 22% and a beta of 0.46. Which stock has higher levels of unsystematic risk? Explain your