Q1) There is a 16.70% probability of a below average economy and a 83.30% probability of an average economy. If there is a below average economy stocks A and B will have retums of 4.80% and 11.60%, respectively. If there is an average economy stocks A and B will have retums of 18.50% and -1.00%, respectively. Compute the: a) Expected Retum for Stock A (0.75 points): b) Expected Retum for Stock B (0.75 points): c) Standard Deviation for Stock A (0.75 points): d) Standard Deviation for Stock B (0.75 points): Q2) There is a 39.80% probability of an average economy and a 60.20% probability of an above average economy. You invest 32.10% of your money in Stock S and 67.90% of your money in Stock T. In an average economy the expected retums for Stock S and Stock T are 14.20% and 12.20%, respectively. In an above average economy the the expected retums for Stock S and T are 27.10% and 15.60%, respectively. What is the expected retum for this two stock portfolio? (2 points) Q3) You are invested 24.70% in growth stocks with a beta of 1.75, 34.80% in value stocks with a beta of 1.41, and 40.50% in the market portfolio. What is the beta of your portfolio? (1 point) Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.24; expected retum on the Market = 11.30%; expected retum on T-bills = 1.30%; current stock Price = $5.75; expected stock price in one year = $11.01; expected dividend payment next year = $4.76. Calculate the a) Required retum for this stock (1 point): b) Expected retum for this stock (1 point)