Question: Thank you please help with these 4 problems! 1. A stock's returns have the following distribution: Demand for the Company's Products Probability of This Demand
| Thank you please help with these 4 problems! 1. A stock's returns have the following distribution:
Assume the risk-free rate is 2%. Calculate the stock's expected return, standard deviation, coefficient of variation, and Sharpe ratio. Do not round intermediate calculations. Round your answers to two decimal places. Stock's expected return: % Standard deviation: % Coefficient of variation: Sharpe ratio:
2. Suppose you are the money manager of a $4.76 million investment fund. The fund consists of four stocks with the following investments and betas:
If the market's required rate of return is 11% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. ____%
3. Beale Manufacturing Company has a beta of 1.4, and Foley Industries has a beta of 0.30. The required return on an index fund that holds the entire stock market is 14%. The risk-free rate of interest is 2.5%. By how much does Beale's required return exceed Foley's required return? Do not round intermediate calculations. Round your answer to two decimal places. ____%
4. Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.4% rate of inflation in the future. The real risk-free rate is 2.0%, and the market risk premium is 5.5%. Mudd has a beta of 2.3, and its realized rate of return has averaged 9.0% over the past 5 years. Round your answer to two decimal places. ____%
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