Question: please do 2 and 3 i have no idea how to do them Growth Normal Recession 0.2 0.5 0.2 0.10 0.15 -0.12 0.20 0.04 0.00

please do 2 and 3 i have no idea how to do them please do 2 and 3 i have no idea how to do

Growth Normal Recession 0.2 0.5 0.2 0.10 0.15 -0.12 0.20 0.04 0.00 a. What is the expected return for stock AS? BS? b. What is the variance of the returns of stock AS? BS? c. What is the standard deviation of the returns of stock AS? BS? 2. You wish to build a portfolio from Stock A and Stock B. The expected returns are 9% and 10% for A and B, respectively. The Bs are 0.95 and 1.25 for A and B, respectively. If you want to create a portfolio with an expected return of 9.5%, what should the weight of each stock be? And what is the B of this portfolio? 3. You are forming a portfolio, where you put a quarter of your money in small stocks with a beta of 2.9 and an expected return of 18%. You put half your money in large stocks with a beta of 1.8 and an expected return of 13%. You invest one eighth of your money in a well-diversified portfolio like the S&P 500 index with a beta of 1 and an expected return of 9%, and finally, one eight of your money is invested in risk free T- bills. The expected return on the T-bills is 4%. a. What is the systematic risk (beta) on your portfolio? b. What is the expected return on your portfolio? 4. You buy Cisco stock for $50 a share. Cisco's stock rises to $100 the next year. The following year, Cisco's stock falls back to $50 a share. a. What was your arithmetic return over the two years? b. What was your geometric return over the two years

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