please answer questions 6 to 12 only, thanks :)

Problem Set 2 Use the following information to answer Questions 1-10. Probability 0.25 0.25 0.20 0.30 Equity returns -8% 5% 14% 28% Debt returns -4% 3% 4% 6% Risk-free rate Correlation, pd.e 0.75% 0.3690 1.(1.25 points) What is the expected return of the debt investment? Round to the nearest 0.01%. 2. (1.25 points) What is the expected return of the equity investment? Round to the nearest 0.01%. 3.(1.25 points) What is the expected standard deviation of the debt investment? Round to the nearest 0.01. 4. ((1.25 points) What is the expected standard deviation of the equity investment? Round to the nearest 0.01. 5.(1.25 points) What is the optimal weight of the debt in the risky portfolio? Round to the nearest 0.01% 6.(1.25 points) What is the expected return of the optimally risky portfolio? Round to the nearest 0.01% 7.(1.25 points) What is the standard deviation of the optimally risky portfolio? Round to the nearest 0.01. 8. (1.25 points) What is the optimal allocation of risk-free assets in the complete portfolio? Assume a risk aversion of 2. Round to the nearest 0.01%. 9. (1.25 points) What is the optimal weight of the equity in the complete portfolio? Round to the nearest 0.01%. 10. (1.25 points) What is the Sharpe ratio of the optimally risky portfolio? Round to the nearest 0.01. 11. (1.25 points) You analyze Stock ABC and forecast a 12% rate of return and compute a beta of 1. You analyze Stock DEF and forecast a 13% rate of return and compute a beta of 1.50. The market's expected return is 11% and the risk-free rate is 5%. According to the capital asset pricing model (CAPM), which stock is a better buy? Hint: Compare your forecast to CAPM results. 12. (1.25 points) According to CAPM, what is a stocks expected rate of return if it has a beta of 1.25, the market risk premium is 8%, and the risk-free rate is 3%? Round to the nearest 0.01%