Problem Set #$18-$due Friday, December $8,2022$ @$8$AM $($circle your final answers$)$

You own a portfolio that is $20\%$ invested in Stock $x,30\%$ in Stock $Y,$ and $50\%$ in Stock Z$.$ The expected returns on these three stocks are $8\%,13\%$ and $7\%,$ respectively. What is the expected return of the portfolio?

You have $$240$ to invest. Your choices are Stock A with a return of $12\%$ and Stock B with a return of $5\%.$ You want a portfolio with a return of $8\%.$ How much money should you invest in Stock B$?$

A stock has an expected return of $11\%,$ the risk$-$free rate is $5\%,$ and its beta is $0\mathrm{.}7.$ What must the expected return of the market be$?$

What is the expected return for a stock that has a beta of $0\mathrm{.}9$ when the return of the market is $10\%$ and the risk$-$free rate is $4\%.$

A stock has an expected return of $10\mathrm{.}8\%$ and a beta of $0\mathrm{.}7,$ and the expected return of the market is $12\%.$ What must the risk$-$free rate be$?$

Name

To submit this problem set:

a$.$ sign your name on the line above.

b$.$ take a picture that includes this problem set & your hand written answers

c$.$ upload the picture to Canvas prior to the due date $($before $8AM$ on date of next class$)$