Stocks A and $B$ have the following probability distributions of expected future returns: e$.$ Given the following information, determine the beta coefficient for Stock A that is

consistent with equilibrium: $R(A)=10\mathrm{.}5\%,Rrf=2\mathrm{.}8\%$ and $Rm=9\mathrm{.}5\%.$

f$.$ Fransisco Manufacturing Company has a beta of $1\mathrm{.}1,$ and Foley Industries has a beta of

$0\mathrm{.}30.$ The required return on an index fund that holds the entire stock market is $11\%.$

The risk$-$free rate of interest is $4\mathrm{.}5\%.$ By how much does Francisco's required return

exceed Foley's required return?

a$.$ Calculate the expected rate of return for stock A and $B.$

b$.$ Calculate the standard deviation of expected returns for Stock A and $B.$

c$.$ Assume the risk$-$free rate is $2\mathrm{.}8\%.$ What are the Sharpe ratios for Stocks A and B$?$

d$.$ Isabella has $$200,000$ to invest in both stocks. If she decides to invest $$80,000$ in Stock

A and the remaining in Stock B$.$ What is the expected portfolio return?

e$.$ Given the following information, determine the beta coefficient for Stock A that is consistent with equilibrium: R$($A$)=10\mathrm{.}5\%,$ Rrf$=2\mathrm{.}8\%$ and Rm$=9\mathrm{.}5\%$

f$.$ Francisco Manufacturing Company has a beta of $1\mathrm{.}1,$ and Foley Industries has a beta of $0\mathrm{.}30.$ The required return on an index fund that holds the entire stock market is $11\%.$ The risk free rate of interest is $4\mathrm{.}5\%.$ By how much does Francisco's required return exceed Foley's required return.