Problem 13-7 Calculating Returns and Standard Deviations [LO1] Consider the following information: Rate of Return If State Occurs State of Economy Recession Normal Boom Probability of State of Economy 0.16 Stock A 005 008 0.13 Stock B -0.16 0.13 030 0.62 0.22 Calculate the expected return for the two stocks. (Round your answers to 2 decimal places. (e.g., 32.16)) Expected return Stock A Stock B Calculate the standard deviation for the two stocks. (Do not round Intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Standard deviation Stock A Stock B Problem 13-8 Calculating Expected Returns [LO1] A portfolio is invested 18 percent in Stock G, 58 percent in Stock J, and 24 percent in Stock K. The expected retums on these stocks are 7 percent, 13 percent, and 17 percent, respectively. What is the portfolio's expected return? (Round your answer to 2 decimal places. (e.g., 32.16)) Portfolio's expected return Problem 13-11 Calculating Portfolio Betas (L04] You own a stock portfolio invested 35 percent in Stock Q. 20 percent in Stock R, 30 percent in Stock S, and 15 percent in Stock T. The betas for these four stocks are 0.77, 1.15, 1.16, and 1.33, respectively. What is the portfolio beta? (Round your answer to 2 decimal places. (e.g., 32.16)) Portfolio beta Problem 13-13 Using CAPM (L04] A stock has a beta of 1.04, the expected return on the market is 10 percent, and the risk-free rate is 3.5 percent. What must the expected return on this stock be? (Round your answer to 2 decimal places. (e.g., 32.16)) Expected return