Name Formulae needed: on the previous Activity 1. Risk and Return BA332 Activity 30 Team (a) Returns Returns Devi- Devi- Problty. from from T- Event of event stocks Bills devi- ation ation ation stocks T-Bills stocks devi- Weighted Weighted ation T- Bills2 deviation stocks deviation T-Bills Recession 0.5 -18 4 Boom 0.5 26 4 Average Std. Dev. Sum Sqrt (b) Based on the expected yields from T-Bills and stocks, what must the market risk of the stocks be? Which pair of firms below, would you expect to have greater specific risk? 2. (a) Tesla Motors or General Motors (b) Whole Foods or Kroger (c) IHOP or General Mills