$*$Capital gain $=$ difference between ending price and beginning price

A$)$ Use the data given to calculate the annual returns for Ark Industries, and Apex Inc during the $5-$year period.

a$.$ Calculate the historical average returns for Ark Industries, Apex Inc, and the market index during the $5-$year period.

b$.$ Calculate the standard deviation of the returns for Ark Industries

c$.$ An individual investor, James Bond needs an extra retum of $6\mathrm{.}0\%$ before he will take on the stock market's risk to invest in Ark Industries. If the risk$-$free rate on long$-$term Treasury bonds is $5\mathrm{.}0\%.$ what would be the required return on the market?

d$.$ James Bond wants to determine the required rate of return on two stocks $($stock A and stock B$)$ that he just added to his portfolio. The following information is available: Market rate of return $=11\mathrm{.}0\%$; Risk free rate $=5\mathrm{.}0\%$; Beta for stock $A=0\mathrm{.}77$; Beta for stock $B=0\mathrm{.}99$ Use the Security Market Line $($SML$)$ equation to calculate the required rate of return for stock A and stock $B.$

B$)$ Richard Morgan, another individual investor wants to purchase four stocks for his portfolio. The expected return, portfolio weights, and the betas of the stocks are given below

$\backslash$table$[[$Stocks$,$Beta,Portfolio weight,Expected return$],[$Goodman Industries,$0\mathrm{.}70,30\%,9\mathrm{.}20\%$