please answer part 2,

questions 1, question 2

and

1, 2, 3

Part II Question 1: You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5 stocks are as follows: .8, -1.3, .95, 1.2 and 1.4. The risk-free return is 3% and the market return is 7%. 1. Compute the beta of the portfolio. 2. Compute the required return of the portfolio. Question 2: You are given the following probability distribution for a stock: Probability Outcome -6% 18% 1. A) Compute the expected return. 2. B) Compute the standard deviation. 3. C) Compute the coefficient of variation