Stocks X and Y have the following distribution of expected returns for Periods 1-5.

Periods	Stock X	Stock Y
1	9	11
2	8	13
3	7	16
4	5	13
5	11	7
Avg Return	8.00	12.00
St. Dev.	2.00	3.00

Calculate the correlation coefficient for Stocks X and Y:

	A.	Between -1.0 and -0.5
	B.	Between -0.5 and 0
	C.	Between 0 and +0.5
	D.	Between +0.5 and +1.0

Questions 17-20 refer to the following table of information about the returns (in percentage form) to an investment in A Port and the Market Index over the first six months of the year.

Year	A Stock	Market
1	4	10
2	2	5
3	7	16
4	6	14
5	1	5
Average	4	10
Variance	5.2	20.4

Which is closest to the market beta of the investment A Stock?

	A.	-1.5
	B.	-0.5
	C.	0.5
	D.	1.5

Three securities have the characteristics described in the following table:

	Stock X	Stock Y	Stock Z
	-1%	4%	3%
	0.6	1.8	0.8
ci	4%	8%	6%

A portfolio consists of 50% of the investors funds in Y, and the remaining amount consists of 25% in each of the other assets X and Z. The expected market return is 12% (R_m = 12%) and the standard deviation of market returns is 5% (_m = 5%).

What is the beta of the portfolio?

	A.	Less than 1
	B.	Greater than or equal to 1 and less than 1.25
	C.	Greater than or equal to 1.25 and less than 1.5
	D.	Greater than or equal to 1.5 and less than 1.75
	E.	Greater than or equal to 1.75

Three securities have the characteristics described in the following table:

	Stock X	Stock Y	Stock Z
	-1%	4%	3%
	0.6	1.8	0.8
ci	4%	8%	6%

A portfolio consists of 50% of the investors funds in Y, and the remaining amount consists of 25% in each of the other assets X and Z. The expected market return is 12% (R_m = 12%) and the standard deviation of market returns is 5% (_m = 5%).

What is the expected return of the portfolio?

	A.	Between 0% and 5%
	B.	Between 5% and 10%
	C.	Between 10% and 15%
	D.	Between 15% and 20%
	E.	Between 20% and 25%