You own a portfolio containing the following stocks.

 

Security	Weight	Beta
A	0.133	3.33
B	0.2	1.2
C	0.267	1.65
D	0.4	0.38

Calculate the following statistics: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56):

 

1)        Portfolio Beta:

 

12) Suppose you have $10,000 to invest and you have purchased the following securities.

	Stock A	Stock B
$ Amount	$4,000	$6,000
Mean return	19.65%	8.96%
Standard deviation (sample)	40%	20%
Correlation coefficient	+0.25

Calculate the following statistics: (1/100 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56):

1)      Expected portfolio return: 

2)      Expected portfolio standard deviation: 

13) After extensive analysis, you predict the following returns for stocks A and B for three possible outcomes. Assume there are only three possible outcomes.

Outcome	Probability	Annual return
		Stock A	Stock B
Boom	20%	20%	30%
Normal	50%	15%	20%
Recession	30%	-10%	-15%

Calculate the following statistics: (1/1000 of one percent without % sign, e.g. 12.671, if a negative percentage, -9.56):

1)      Expected return for stock A: 

2)      Expected return for stock B: 

3)      Standard deviation for stock A:

4)      Standard deviation for stock B: