1. Yu hv grdutd frm th univrsity nd strtd wrking in n invstmnt bnk s junir nlyst. In yur wkly mting tdy, yur mngr skd yu t nlyz invstmnt pprtunitis fr lint. Yu fund thr stks in th mrkt, Stk , Stk B, nd Stk . Yu summrizd ll th infrmtin yu gthrd but ths stks in th tbl blw.

	Stk	Stk B	Stk
xptd Rturn	9.1%	4.8%	13.26%
Stndrd Dvitin	19.6%	19.6%	19.6%

Yu r ls lking t th mrkt prtfli nd risk-fr invstmnt pprtunitis. Infrmtin yu hv n ths ssts is summrizd in th tbl blw.

Stt	Prbbility	Mrkt Rturn	Risk Fr sst
Grwth	0.26	35%	6%
Nrml	0.40	12%	6%
Rssin	0.34	-5%	6%

1. lult th xptd rturn nd th stndrd dvitin f th mrkt prtfli nd th risk-fr surity.
2. Yu lrn tht th rrltin btwn Stk nd B is -1. Yur mngr sks yu t frm risklss prtfli frm ths tw suritis. lult th wights yu shuld llt t Stks nd B t frm this risklss prtfli.
3. Furthr rsrh shws tht th bts f stks , B nd r 0.50, 0.18 nd 1.1, rsptivly. lult th xptd rturn, th bt, nd th rquird rturn f th prtfli yu frmd in prt (b) frm Stks nd B.
4. Givn th bts f ths suritis in prt (), yur mngr ls wnts yu t lult th rquird rt f rturn n ths thr stks nd dtrmin th undrprid, vrprid, nd rrtly-prid suritis.
5. If yu nd t hs n f ths stks fr invstmnt, did whih n yu hs nd brifly xplin why yu hs tht stk.
6. Yur mngr wnts yu t frm prtfli with bt f 1 frm Stks , nd . Dtrmin th wights yu shuld llt t ths stks nd lult th rturn this prtfli. mpr th rturn n yur prtfli t tht f th mrkt prtfli, nd brifly disuss if this mrkt n b t quilibrium r nt.
7. Yur mngr is nrnd tht yu md mistk in yur lultins bus vn thugh ths suritis hv th sm stndrd dvitin, thy hv quit diffrnt rturns. Yur mngr rgus tht th highr th risk highr th rturn shuld b n surity. Brifly xplin th flw in yur mngrs lin f thught.