A stock has an expected return of 15 percent, its beta is 0.45, and the risk-free rate is 7.5 percen

A stock has an expected return of 15 percent, its beta is 0.45, and the risk-free rate is 7.5 percent. What must the expected return on the market be?

rev: 09_20_2012

25.38%

16.67%

22.96%

25.13%

24.17%

Your portfolio is invested 30 percent each in stocks A and C, and 40 percent in stock B. What is the standard deviation of your portfolio given the following information?   State of
  Economy Probability of
State of Economy Rate of Return
if State Occurs Stock A Stock B Stock C   Boom 0.25 0.25 0.25 0.45   Good 0.25 0.10 0.13 0.11   Poor 0.25 0.03 0.05 0.05   Bust 0.25 -0.04 -0.09 -0.09 12.38 percent 12.64 percent 12.72 percent 12.89 percent 13.97 percent