You have been provided the following data about the securities of three firms, the market portfolio, and the risk-free asset:

a.	Fill in the missing values in the table. (Leave no cells blank - be certain to enter 0 wherever required. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Security	Expected Return	Standard Deviation	Correlation*	Beta
Firm A	.10	.31		.85
Firm B	.14		.50	1.40
Firm C	.16	.65	.35
The market portfolio	.12	.20
The risk-free asset	.05

* With the market portfolio.

b-1.	What is the expected return of Firm A? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return

%

b-2.

What is your investment recommendation regarding Firm A for someone with a well-diversified portfolio?

	Buy
	Sell

b-3.	What is the expected return of Firm B? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return

%

b-4.

What is your investment recommendation regarding Firm B for someone with a well-diversified portfolio?

	Sell
	Buy

b-5.	What is the expected return of Firm C? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Expected return

%

b-6.

What is your investment recommendation regarding Firm C for someone with a well-diversified portfolio?

	Sell
	Buy