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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

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed 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? Anderson, Inc. Nathan's Bakeries Delta Vanlines Z-man Electronics You decide to form a portfolio of the following amounts invested in the following stocks. What is the expected return of the portfolio? SET YOUR CALCULATOR TO 4 DECIMAL PLACES THEN INPUT THE NUMBER AS PERCENTAGE ROUNDING TO 2 DECIMALS. DO NOT ENTER THE \% SYMBOL..i.e. if your answer is 7.7711%, enter it as 7.77. 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? Nathan's Bakeries Anderson, Inc. Z-man Electronics Delta Vanlines All of the stocks 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 THE ANSWER ROUNDING TO 2 DECIMALS i.e. if your answer is 1.2455 , enter it as 1.25 . 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

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