LO1 7. Calculating Returns and Standard Deviations Based on the following information, calculate the expected returns and standard deviations for the two stocks. LO3 11. Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 20 percent in Stock R. 30 percent in Stock S, and 35 percent in Stock T. The beras for these four stocks are . 79,1.23,1.13, and 1.36 , respectively, What is the portfolio beta? LO4 13. Using CAPM A stock has a beta of 1.15, the expected return on the market is 11.3 percent, and the risk-free rate is 3.6 percent. What must the expected return on this stock be? Pige389 18. Reward-to-Risk Ratios Stock Y has a beta of 1.2 and an expected return of 11.5 percent. Stock Z has a beta of . 80 and an expected return of 8.5 percent. If the risk.free rate is 3.2 percent and the market risk premium is 6.8 percent, are these stocks correctly priced