Part A

Part B

Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return 0.15 Strong Normal Weak 18% 10 0.45 0.4 -6 What is the stock's expected retur? Round your answer to 2 decimal places. Do not round Intermediate calculations What is the stock's standard deviation? Round your answer to two decimal places. Do not found intermediate calculations, % What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations. Quantitative Problem: You are holding a portfolio with the following investments and betas: Dollar investment Stock Beta A B $250,000 200,000 300,000 250,000 1,000,000 1.25 1.5 0.75 -0.2 Total investment The market's required return is 11% and the risk-free rate is 4%. What is the portfolio's required return? Round your answer to 3 decimal places. Do not round Intermediate calculations. 96