1.

Consider the following information about expected returns for two securities, XYZ and GHG.

	Probability	XYZ	GHG
Boom	40%	13.5%	-2%
Neutral	25%	8%	7%
Bust	35%	-1%	9.8%

The expected return for a portfolio invested 65% in XYZ and 35% in GHG is:

2.

Mark estimates the expected returns for XYZ and GHG to be 12.3% and 5.2% respectively. Mark wants to build a portfolio with an expected return of 9.50%. The weight of XYZ in the portfolio should be:

3.

Given the following information about past returns for XYZ, what is the standard deviation of returns?

Year	Return
1	12.00%
2	8.30%
3	-4.70%
4	-0.90%
5	5.70%