ST$3.$ Two common stocks, Consolidated Edison and Apple, have the following

expected return and standard deviation of return over the next year:

Additionally, assume that the correlation coefficient of returns on the two securi$-$

ties is $+0\mathrm{.}50.$ For a portfolio consisting of $75$ percent of the funds invested in

Consolidated Edison and the remainder in Apple, determine the:

a$.$ Expected rate of return on the portfolio

b$.$ Standard deviation of the rate of return

ST$4.$ Determine the beta of a portfolio consisting of equal investments in the following

common stocks: