Question: Please show all work 1) ABC Inc.'s stock has a 20% chance of producing a 10% return, a 50% chance of producing a 0% return,

Please show all work

1)

ABC Inc.'s stock has a 20% chance of producing a 10% return, a 50% chance of

producing a 0% return, and a 30% chance of producing a -5% return. What is the firm's

expected rate of return?

2)

XYZ Inc. is considering a capital budgeting project that has an expected return of 20%

and a standard deviation of 5%. What is the project's coefficient of variation?

3) An Investor has $400,000 invested in a 2-stock portfolio. $260,000 is invested in Stock X

and the remainder is invested in Stock Y. X's beta is 1.2 and Ys beta is 1.5. What is the

portfolio's beta?

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