please complete question 5 and show work, ive added the two questions that its referring to!

Number 19 f B D E F G 1 K H Question 5 (5 Marks) Refer to Questions 1 and 2. Richard has just received an unexpected bonus at work worth $5,500 and, given the J. Corp.'s reputation for excellent investment decision making, he will invest all of the bonus in J Corp. stock. Given the rates of return for stocks A, B, C, and D presented in Question 1 and the rates of return for J Corp. stock and the market presented in Question 2, as well as the cash amounts he is investing in stocks A, B, C, and D as you determined in Question 1, a) What is the beta of Richard's portfolio? (3 Marks) (round to two decimal points) Enter Answer b) Richard's portfolio is... (2 Mark) Aggressive Defensive Neither Check only one 1 Enter your Final Answer Here Complete your rough work in the space below Format Painter IM Merge & Center $%98- Conditional to Formatting Clipboard TS Font Alignment Number F29 f A D E G H K M P B Question 2 (3 Marks) Anna is a Vice President at the J Corporation. The company is considering investing in a new factory and Anna must decide whether it is a feasible project. In order to assess the viability of the project, Anna must first calculate the rate of return that equity holders expect from the company stock. The annual returns for J Corp. and for a market index are given below. Currently, 7 the risk-free rate of return is 1.6% and the market risk-premium is 3.5% 0.82 4.45% a) What is the beta of J Corp.'s stock? mo (1 Mark Round your answer to two decimal places) b) Using the CAPM model, what is the expected rate of return on J Corp. stock for 11 the coming year? 22 Marks Round your answer to one one hundreth of a percent J Corp Return 13 200 Market Enter your Final Answer Here (%) 14 16 16 17 16 19 20 21 Year 1 2 3 4 5 6 7 3 9 10 11 12 Return (9) 4.17 1720 2447 26.47 29.77 31.49 25.19 25.05 9.83 19 29 -11.71 -1377 8.73 1232 13.32 -14.80 15 83 1268 13 DE 5.00 9.73 -5.30 -6.50 23 24 25 26 27 2 20 30 Complete your rough work in the space below Title Page Question 1 Question 2 Question 3 Question 4 Questions Format Painter = il li li Merge Center % Clipboard For Font Alignment Number M68 fx D E H K B 1 Question 1 (4 Marks) 2 Richard must decide how to allocate the capital in his portfolio. 3 Richard has $22,000 available to invest. He finds the rates of 4 return for four stocks for the past 12 years and the results are given 5 below. Richard plans to invest 25% of his funds in each stock. 6 1 7 a) How much will he invest in each stock? $5,500 18 (1 mark) b) The expected return of Richard's porfolio is: 6.73 % 10 (2 Maries) Round your answer to one one-hundret of a percent) 11. c) The standard deviation of Richard's portfolio return is: 6.73 % 12 (1 Mark (Round your answer to one one hundredth of a percent) 13 14 Year Stock A(%) Stock B (%) Stock (%) Stock D (%) Enter your Final Answer Here 15 -3.680 -0.830 1.730 -5 800 2 17.780 4.535 -3.635 26.390 17 3 24.960 6.330 -5.430 37.160 18 26.960 6-830 -5.930 40.160 10 5 -29 280 -7.230 8 130 44.200 20 6 31.980 -7.185 47.690 21 7 25 680 6.510 -5.610 38.240 22 8 26.440 6.700 -5.800 39.380 23 9 10.320 2670 -1.770 15,200 24 10 19.780 5035 4135 29 300 25 11 -11 200 -2.730 3.630 -17 200 26 12 -13.280 3230 4.130 20.200 27 Complete your rough work in the space below 28 8.085 Number 19 f B D E F G 1 K H Question 5 (5 Marks) Refer to Questions 1 and 2. Richard has just received an unexpected bonus at work worth $5,500 and, given the J. Corp.'s reputation for excellent investment decision making, he will invest all of the bonus in J Corp. stock. Given the rates of return for stocks A, B, C, and D presented in Question 1 and the rates of return for J Corp. stock and the market presented in Question 2, as well as the cash amounts he is investing in stocks A, B, C, and D as you determined in Question 1, a) What is the beta of Richard's portfolio? (3 Marks) (round to two decimal points) Enter Answer b) Richard's portfolio is... (2 Mark) Aggressive Defensive Neither Check only one 1 Enter your Final Answer Here Complete your rough work in the space below Format Painter IM Merge & Center $%98- Conditional to Formatting Clipboard TS Font Alignment Number F29 f A D E G H K M P B Question 2 (3 Marks) Anna is a Vice President at the J Corporation. The company is considering investing in a new factory and Anna must decide whether it is a feasible project. In order to assess the viability of the project, Anna must first calculate the rate of return that equity holders expect from the company stock. The annual returns for J Corp. and for a market index are given below. Currently, 7 the risk-free rate of return is 1.6% and the market risk-premium is 3.5% 0.82 4.45% a) What is the beta of J Corp.'s stock? mo (1 Mark Round your answer to two decimal places) b) Using the CAPM model, what is the expected rate of return on J Corp. stock for 11 the coming year? 22 Marks Round your answer to one one hundreth of a percent J Corp Return 13 200 Market Enter your Final Answer Here (%) 14 16 16 17 16 19 20 21 Year 1 2 3 4 5 6 7 3 9 10 11 12 Return (9) 4.17 1720 2447 26.47 29.77 31.49 25.19 25.05 9.83 19 29 -11.71 -1377 8.73 1232 13.32 -14.80 15 83 1268 13 DE 5.00 9.73 -5.30 -6.50 23 24 25 26 27 2 20 30 Complete your rough work in the space below Title Page Question 1 Question 2 Question 3 Question 4 Questions Format Painter = il li li Merge Center % Clipboard For Font Alignment Number M68 fx D E H K B 1 Question 1 (4 Marks) 2 Richard must decide how to allocate the capital in his portfolio. 3 Richard has $22,000 available to invest. He finds the rates of 4 return for four stocks for the past 12 years and the results are given 5 below. Richard plans to invest 25% of his funds in each stock. 6 1 7 a) How much will he invest in each stock? $5,500 18 (1 mark) b) The expected return of Richard's porfolio is: 6.73 % 10 (2 Maries) Round your answer to one one-hundret of a percent) 11. c) The standard deviation of Richard's portfolio return is: 6.73 % 12 (1 Mark (Round your answer to one one hundredth of a percent) 13 14 Year Stock A(%) Stock B (%) Stock (%) Stock D (%) Enter your Final Answer Here 15 -3.680 -0.830 1.730 -5 800 2 17.780 4.535 -3.635 26.390 17 3 24.960 6.330 -5.430 37.160 18 26.960 6-830 -5.930 40.160 10 5 -29 280 -7.230 8 130 44.200 20 6 31.980 -7.185 47.690 21 7 25 680 6.510 -5.610 38.240 22 8 26.440 6.700 -5.800 39.380 23 9 10.320 2670 -1.770 15,200 24 10 19.780 5035 4135 29 300 25 11 -11 200 -2.730 3.630 -17 200 26 12 -13.280 3230 4.130 20.200 27 Complete your rough work in the space below 28 8.085