Can you do these 7 questions for me?

You own a portfolio that is 32 percent invested in Stock X, 47 percent in Stock Y, and 21 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively.

Required:

What is the expected return on the portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

Consider the following information:

Rate of Return if State Occurs

State of

Probability of State

Economy

of Economy

Stock A

Stock B

Recession

0.22

0.045         

–0.42         

  Normal

0.62              

0.125         

0.32

  Boom

0.16

0.310         

0.55

Requirement 1:

Calculate the expected return for the two stocks. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

  E(RA)

  E(RB)

Requirement 2:

Calculate the standard deviation for the two stocks. (Do not include the percent signs (%). Round your answers to 2 decimal places (e.g., 32.16).)

 Standard deviation

  σA

  σB

Stock C

0.69              

0.12        

0.06        

0.27       

  Bust

0.31              

–0.07       

(a)

What is the expected return on an equally weighted portfolio of these three stocks? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

  Expected return

(b)

What is the variance of a portfolio invested 24 percent each in A and B and 52 percent in C? (Round your answer to 5 decimal places (e.g., 32.16161).)

  Variance

of a portfolio

A stock has a beta of 1.18, the expected return on the market is 11.2 percent, and the risk-free rate is 4.85 percent.

What must the expected return on this stock be? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

A stock has an expected return of 11.8 percent, its beta is 0.93, and the risk-free rate is 5.90 percent.

What must the expected return on the market be? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

You have $264,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.4 percent, and Stock L, with an expected return of 11.5 percent.

If your goal is to create a portfolio with an expected return of 12.70 percent, how much money will you invest in Stock H and in Stock L? (Do not include the dollar signs ($). Enter rounded answers as directed, but do not use the rounded numbers in intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

  Investment in Stock H

$  

  Investment in Stock L

Consider the following information on a portfolio of three stocks:

State of
Economy

Probability of
State of Economy

Stock A
Rate of Return

Stock B
Rate of Return

Stock C
Rate of Return

0.13

0.02

0.50

0.10

0.20

–0.21  

–0.35  

If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the portfolio’s expected return, the variance and the standard deviation? (Do not include the percent signs (%). Round your variance answer to 5 decimal places (e.g., 32.16161) and the other answers to 2 decimal places (e.g., 32.16).)

%  

  Standard deviation

If the expected T-bill rate is 4.25 percent, what is the expected risk premium on the portfolio? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)

  Expected risk premium