Using the information provided in Table 5-1: Calculate the expected rate of return (r) for this stock. b) Calculate its absolute risk, the standard deviation (sigma). c) Calculate its relative risk, the coefficient of variation (CV). s A money manager is holding a $2 million portfolio that consists of the following five stocks: The portfolio has a required return of 10.5 percent, and the market risk premium, RP_M, is 6 percent. a. What is the portfolio's beta, b_P? b. What is the nominal, risk-free rate, r_RF? c. What is the required rate of return on Stock D? d. Which stock in the portfolio is expected to earn the same return as the market? Explain. What is r_M? A money manager is holding the following portfolio: The risk-free rate is 5.3 percent, and the portfolio's required rate of return is 13.1 percent. The manager would like to sell all of her holdings of Stock 4 and use the proceeds to purchase more shares of Stock 1. What would be the portfolio's new required return and beta following this change? Using the information provided in Table 5-1: Calculate the expected rate of return (r) for this stock. b) Calculate its absolute risk, the standard deviation (sigma). c) Calculate its relative risk, the coefficient of variation (CV). s A money manager is holding a $2 million portfolio that consists of the following five stocks: The portfolio has a required return of 10.5 percent, and the market risk premium, RP_M, is 6 percent. a. What is the portfolio's beta, b_P? b. What is the nominal, risk-free rate, r_RF? c. What is the required rate of return on Stock D? d. Which stock in the portfolio is expected to earn the same return as the market? Explain. What is r_M? A money manager is holding the following portfolio: The risk-free rate is 5.3 percent, and the portfolio's required rate of return is 13.1 percent. The manager would like to sell all of her holdings of Stock 4 and use the proceeds to purchase more shares of Stock 1. What would be the portfolio's new required return and beta following this change