Question: Quantitative Problem: You are given the following probability distribution for CHC Enterprises: State of Economy Probability Rate of return Strong 0.25 20% Normal 0.55 9%

Quantitative Problem: You are given the following probability distribution for CHC Enterprises:

State of Economy	Probability	Rate of return

Strong	0.25	20%
Normal	0.55	9%
Weak	0.2	-4%

What is the stock's expected return? Round your answer to 2 decimal places. Do not round intermediate calculations. %

What is the stock's standard deviation? Round your answer to two decimal places. Do not round intermediate calculations. %

What is the stock's coefficient of variation? Round your answer to two decimal places. Do not round intermediate calculations.

Suppose you are the money manager of a $4.83 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock	Investment	Beta
A	$ 320,000	1.50
B	560,000	(0.50)
C	1,500,000	1.25
D	2,450,000	0.75

If the market's required rate of return is 8% and the risk-free rate is 3%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

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