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Your broker has developed a list of firms, their betas, and the return he expects the stock to yield over the next twelve months (labeled "Expected Return"). You have estimated that the risk-free rate is 5% and the return to the market will be 12%. Assuming that CAPM is correct, which stock should you purchase? Z-man Electronics Anderson, Inc. Nathan's Bakeries All of the stocks Delta Vanlines Your broker has developed a list of firms, their betas, and the return he expects the stock to yield over the next twelve months (labeled "Expected Return"). You have estimated that the risk-free rate is 5% and the return to the market will be 12%. Assuming that CAPM is correct, which stock should you purchase? All of the stocks Anderson, Inc. Delta Vanlines Consider the following returns and states of the economy for TZ.Com.: What is the standard deviation of TZ's returns? SET YOUR CALCULATOR TO FOUR DECIMAL PLACES AND ROUND TO 2 DECIMAL PLACES AT THE END. DO NOT ENTER THE \%. FOR EXAMPLE, IF YOUR ANSWER IS 7.7011\% ENTER IT AS 7.70. You decide to form a portfolio of the following amounts invested in the following stocks. What is the beta of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT YOUR ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455 , enter it as 1.25