Use the following information to answer the questions. Security Beta Standard deviation Expected return Market 1.0 10% 8.0% Risk-free- 0.02 2% 4.0% Firm A 1.54 30% ( )% Firm B- 20% 7.0% Firm Ce 2.04 25% ( )% 1) Figure out the expected return for Firm A. (15points) 2) Figure out the beta for Firm B (15points) 3) Compare Firm A with Firm C. i) Which firm has a higher Total risk? Firm A or C? ii) Which firm has a higher Expected return? Firm A or C? Why? (30points) 4) You form a portfolio by investing $6,000 in the market and $4,000 in the risk-free security. Figure out both the expected return and beta for the portfolio. (30points) 5) There are three kinds of risk: total risk, systematic risk, and unsystematic risk. Which risk is related to factors affecting a limited number of stocks? (20points) 6) Among three kinds of risk: total risk, systematic risk, and unsystematic risk, which risk determines the expected return on a stock? (20points)