Stock	Number of shares	1January	31 December
A	1 000	60	80
B	10 000	20	35
C	30 000	18	25

1.Using the Market weighted Index. What is the percentage change in the index?

Stock A	Stock b
Expected Rate of return 10%	Expected Rate of return 14%
Standard Deviation 7%	Standard Deviation 8%
Weight 0.7	Weight 0.3
COVab=0.0013

2. What is the standard deviation of the portfolio above?

Stock	Number of shares	1January	31 December
A	1 000	60	80
B	10 000	20	35
C	30 000	18	25

3.Using the price equally weighted Index. What is the percentage change in the index if $1000 is invested in each share?

Rate of return	Probability
80%	015
40%	0.30
25%	0.40
-30%	0.15

4..What is Stock A expected rate of return?

Rate of Return	Probability
80	0.15
40	0.30
25	0.40
-30	0.15

5.What is the standard deviation of Stock A

Stock A	Stock b
Expected Rate of return 10%	Expected Rate of return 14%
Standard Deviation 7%	Standard Deviation 8%
Weight 0.7	Weight 0.3

6.What is the expected rate of return E(Ri) of the portfolio above?

Stock	Number of shares	1January	31 December
A	1 000	60	80
B	10 000	20	35
C	30 000	18	25

7.Using the price weighted Index. What is the percentage change in the index?