Question 21 (4 points) You currently hold a well-diversified portfolio with an expected return of 8 percent, a beta of 1.2, and a total value of $4000. You plan to increase your portfolio by buying 500 shares of AT&E at $50 a share. AT&E has an expected return of 12 percent with a beta of 2.0. After the purchase, the portfolio expected return will be: Your Answer: Answer units Question 22 (4 points) Consider the following probability distribution for next years's returns on Stock J. State Probability Return on J 1 2 3 0.2 0.6 0.2 -2% 10% 19% The standard deviation of returns for Security J is: Your Answer: Answer units