I'm sorry if the file names are confusing, I numbered them by problem not by part. So part1 file is problem #1. part2a file is the first picture for problem #2. so on.

\fIntro We know the following expected returns for stocks A and B, given different states of the eoonomy: State (5) Recession 0.3 Normal 0.5 Expansion 0.2 Probability Elms} EITBJJ -0.02 0.13 0.21 0.04 0.07 0.11 Part 1 What is the expected retum for stock A? 3+ decimals E l" Attempt1l'10for10pts. Part 2 What is the expected return for stock B? 3+ decimals i H l" Attempt1f10for'10pts. \fProblem 3 44 Intro Below are the expected returns for different asset classes for next year: Asset class Exp. return T-bills 1.3% Corporate bonds 6.6% Small company stocks 15.4% Large company.r stocks 8.7% il l" Att tmor 10 ts. Part 1 m" \"r p What is the risk premium for corporate bonds? 3+ decimals \f\f\fProblem 6 Intro The table below shows the expected rates of return for three stocks and their weight in some portfolio: Stock A Stock 3 Stock 0 Expected return 0.06 0.03 0.12 Weight 0.3 0.2 0.5 il l' Att t1f10fo '10 ts. Part 1 amp r P What is the expected portfolio return? Problem 7 .. / Intro You've assembled the following portfolio: Stock Exp. return Investment 1 8.5% $3,000 2 12.5% $12,000 3 13.1% $6,000 il F Att t1f10f010 ts. Part 1 em" ' P What is the expected return of the portfolio? Problem 8 Intro The return on Visa stock has a standard deviation of 33% and the return on Walmart stock has a standard deviation of 16%. Their correlation is 0.44. Part 1 i" Attempt1i10for'10pts. If you invest 70% in Visa and 30% in Walmart, what is the variance of the portfolio? 3+ decimals lIII Attem t1i10 for '10 ts. Part 2 P P What is the standard deviation of the portfolio? 3+ decimals Problem 9 Intro The following table shows realized rates of return for two stocks. Part 1 l" Attempwmrorlopts. What is the arithmetic average return for stock B? 3+ decimals \f