Question: Given the following probability distribution, please answer question I and 2. State Pr 0.2 10% 0.3 1. What is the expected return for Security J?

Given the following probability distribution, please answer question I and 2. State Pr 0.2 10% 0.3 1. What is the expected return for Security J? 2. What is the standard deviation of returns for Security J? 3. If we assume that asset X has an expected return of 0.1 and a standard deviation of 0.25, then what is the asset's coefficient of variation? 4. If the expected return on Stock 1 is 6%, and the expected return on Stock 2 is 20%, what is the expected return on a two-asset portfolio that holds 70% of its funds in Stock 1 and 30% in Stock 2?The risk-free rate is equal to 3 percent and the market risk return is 12 percent. Mercury has a beta of 2.0. Answer Question 5-7. 5. What is the market risk premium? 6. What is the risk premium for Mercury? 7. What is the required rate of return for Mercury? 8. What is the beta of a portfolio which invests 70% in Treasury Bills and the rest in S&P500 index finds? 9. What is the required rate of return of a beta with beta of 0.75 when the T-bill's rate of return is 5% and the market risk premium is 10%%

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