The Blue Orange Investment Fund has a total investment of $1 billion in two stocks: STOCK Blue Orange INVESTMENT $400 million $600 million The current risk-free rate is 5%. The expected and required rate of return for the market portfolio is based upon the following probability distribution: PROBABILITY .20 .20 .35 MARKET RETURN .00 .10 .40.25 information on the stock's systematic risk is the following: STOCK Blue Orange INVESTMENT BETA 2.00 1.20 expected returns on two stocks are the following: PROBABILITY BLUE RETURN .10 .25 .05 35 .10 .30 20 ORANGE RETURN -.10 .00 .15 .30 Using IMAGE-What is the required market rate of return?

Using IMAGE-#-1-#: What is the required market rate of return? Your answer

Using IMAGE-#-1-#What is the required rate of return for the Blue-Orange Investment Fund? Your answer 

Using IMAGE-#-1-#: What is the expected rate of return for the Blue-Orange Investment Fund? Your answer 

Using IMAGE-#- #: What is the expected rate of return for Blue? Your answer