1. Calculate the Expected Rate, Standard Deviation, Variance and Coefficient of variation and decide which of the following company is better for investment.

Possible outcomes	Probability	Rate of Return
		Company G	Company H
Bullish Trend	0.25	20%	32%
Normal Trend	0.45	8%	5%
Bearish Trend	0.3	-6%	-6%

2. Consider a portfolio comprised of three securities in the following proportions and with the indicated security beta.

Security	Amount Invested	Beta	Expected return
A	$1.5 million	1.3	12.5%
B	$1.0 million	-0.1	8%
C	$2.0 million	0.6	9.8%

a. What is the portfolios beta?

b. What is the portfolios expected return?