1. If the risk free return is 8% and expected return on market portfolio is 12%, calculate the beta coefficient of the stock if its required rate of return is: a) 15% b 18% 10% 2. A Berhad is considering a security. One year Treasury Bills are currently paying 3.1%. Calculate the following expected return and its standard deviation. Should A Berhad invest in this security? Probability 0.15 0.30 0.40 0.15 Return -1% 2% 3% 8% 3. B Berhad is considering an investment in one of two company shares. Given the information that follows, based on risk (measured by standard deviation) and return, which investment is better? Company X Probability 0.30 0.40 0.30 Return 11% 15% 19% Company Y Probability 0.20 0.30 0.30 0.20 Return - 5% 6% 14% 22%