Question $16(5$ points$)$

Use the following information to answer the two questions below.

You MUST use $4$ digits in every calculation you do in order for your answer to be the

same as the one in the system. When entering your answer, round to the nearest

$0\mathrm{.}01\%$ but do not enter the $\%$ sign. For example, if your answer is $3\mathrm{.}484\%$ enter $3\mathrm{.}48$ ;

if your answer is $0\mathrm{.}12013$ then enter $12\mathrm{.}01$

What is the expected return of a portfolio with $80\%$ in asset A and $20\%$ in Asset B$?$

A

What is the variance of the portfolio with $80\%$ in asset A and $20\%$ in Asset B$?$

A

Question $17(5$ points$)$

What is the return on the market portfolio $($rM$),$ when the risk$-$free rate $($rRF$)$ is $2\mathrm{.}4\%$

and the market is in equilibrium and if a stock has a beta of $1\mathrm{.}1$ and a required rate of

return of $11\mathrm{.}9\%?$

Show your answer to the nearest $.1\%$ using whole numbers $($e$.$g$.,$ enter $14\mathrm{.}1\%$ as

$14\mathrm{.}1$ rather than $\mathrm{.}141).$

Your Answer: