Suppose you have the following information regarding two stocks Year 2012 2013 2014 13% 2% 3% 7% 2% a) b) Calculate the average rate of return and estimated standard deviation of both stocks If your portfolio consists of 75% stock A and 25% stock B, what would the average realized rate of return be? You have an investment that consists of 3 stocks. Stock 1 is worth $22,000 with a beta of 0.97. Stock 2 is worth $7,500 and has a beta of 1.2. Stock 3 is worth $15,200 and has a beta of 1.35. What is the portfolio beta and portfolio standard deviation? Paul McLaren holds the following portfolio: Stock Investment Beta 150,000 1.40 0.80 100,000 1.00 1.20 $50 $75,000 Paul plans to sell Stock A and replace it with Stock E (same amount of investment as Stock A), which has a beta of 0.75. By how much will the portfolio beta change? Zacher Co's is going to implement a project to expand its shipping operations. The project has a 1.40, the risk-free rate is 4.25%, and the market risk premium is 55%, what is the adjusted rate of return? What would Zacher Co's accept/reject criteria be? project's risk