Question: QUESTION 3 10 points Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio
QUESTION 3 10 points Given the following information about the returns of stocks A, B, and C, what is the expected return of a portfolio invested 30% in stock A, 40% in stock B, and 30% in stock State of economy Probabilty Stock A Stock B Stock C Boom Good Poor Bust Enter answer in percents. 0.14 0.2 0.2 0.39 0.32 0.31 0.1 0.18 0.26 0.07 0.02 0.05 -0.26-0.19 -0.29 QUESTION 4 10 points A stock has an expected return of 17.8 percent, the risk-free rate is 5.1 percent, and the market risk premium is 8.4 percent. What must the beta of this stock be? QUESTION 5 10 points s You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 0.87 and the total portfolio is equally as risky as the market. What must the beta be for the other stock in your portfolio
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