Question: Problem # 1 ( 8 marks ) What is the expected return for the following portfolio?Asset Investment ReturnA $ 2 0 0 1 5 %

Problem #1(8 marks)What is the expected return for the following portfolio?Asset Investment ReturnA $20015%B $30010%C $50025%Problem #2(6 Marks)You purchased 200 shares of common stock on January 1,2024 for $42.27 per share. The stockpays an annual dividend of $5 per share. On December 31,2024 the market price is $43.88 pershare. What is your percentage return on investment for the year?Problem #3(20 marks)Use the information in the table below and answer the following questions.State of theProbabilityReturn onReturn onEconomyOf StateABGrowth 0.2515%8%Normal 0.505%20%Recession 0.25-10%25%a) b) c) d) e) What is the expected return on security A?(2 marks)What is the standard deviation of security A?(5 marks)What is the expected return on a $10,000 portfolio that has $6,000 invested in A and theremainder invested in B? The expected return of stock B =18.25%(4 marks)What is the correlation between the returns of stock A and stock B? Assume the standarddeviation of security B is 6.26%. Assume the COV of the returns between A and B is-50.9375(-0.00509375 is using decimals)(3 marks)What is the total risk (standard deviation) of the portfolio in part (c)?(6 marks

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