What are some examples of diversifiable risks? In other words, name some risks specific to individual companies that do not affect the stock market as a whole. 2) Assume the expected return of the stock market is 10% and the expected return for bonds is 5%. What is the expected return of a portfolio that is 60% stocks and 40% bonds? 3) Assume a stock earns the returns below with the associated probabilities. Probability Return -20% 10% 50% 40% What is the stock's expected return? 8% 12% 4) Using the data in question 3, what is the standard deviation of the stock's return? 5) A stock has a o of 15%, an expected return of 8%. The risk-free rate is 1%. a. What is the coefficient of variation? b. What is the Sharpe ratio? 6) Name an asset or industry that might have a negative beta. Explain your answer. 7) A stock has a beta of 1.2. The risk-free rate is 2%. The expected return of the whole stock market is 12%. Using the CAPM, what is the expected return of the stock?