please show your work and solve with Xcel. submit Xcel for grading 6-3 - Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required return on (1) the market, (2) a stock with a beta of 1.0, and (3) a stock with a beta of 1.7?

6-6- The market and Stock J have the following probability distributions: Probability. r. M. r 0.3 15% 20% 0.4 9 5 0.3 18 12

a. Calculate the expected rates of return for the market and Stock J.

b. Calculate the standard deviations for the market and Stock J.

6-7- Suppose rRF=5 5%, rM 5 =10%, and rA 5 =12%.

a. Calculate Stock A's beta.

b. If Stock A's beta were 2.0, then what would be A's new required rate of return?

6-9- Your retirement fund consists of a $5,000 investment in each of 15 different common stocks. The portfolio's beta is 1.20. Suppose you sell one of the stocks with a beta of 0.8 for $5,000 and use the proceeds to buy another stock whose beta is 1.6.

Calculate your portfolio's new beta.

6-10 - Suppose you manage a $4 million fund that consists of four stocks with the following investments: Stock Investment Beta A $ 400,000