What is the standard deviation of the returns on a stock given the following information? State of Economy of Economy Boom .08 Normal .70 Recession .22 8.03% 5.78% 4.59% 3.82% Probability of State Rate of Return if State Occurs .171 .076 .017 4.20% You own the following portfolio of stocks. What is the portfolio weight of Stock C? Price per Share Stock A B C D Number of Shares 650 320 400 100 53.41% 52.18% 53.86% 51.09% 52.65% $15.82 $11.09 $39.80 $7.60 What is the expected return on this portfolio? Expected Number of Return Shares -.02 1,400 .11 2,800 .05 3,600 Stock A B C 7.86% 9.43% 5.90% 8.17% 4.67% Price per Share $15.57 $57.08 $27.75 What is the beta of the following portfolio? Security Stock A B C 1.40 1.49 1.54 1.27 1.10 Amount Invested Beta $6,000 1.37 $17,900 95 $2,750 1.48 ou would like to combine a risky stock with a beta of 1.48 and U.S. Treasury bills in such a way that the risk level of the portfolio will be equivalent to the risk level of the overall market. What percentage of the portfolio should you invest in the risky stock? 65.79% 56.8% 52.0% 67.57% 63.32%