Question

Problem 8-1 

Expected return 

A stock's returns have the following distribution: 

a. Calculate the stock's expected return. Round your answer to two decimal places 13.6 % 

b. Calculate the stock's standard deviation. Do not round intermediate calculations. Round your answer to two decimal places.

c. Calculate the stock's coefficient of variation. Round your answer to two decimal places. 

Answer 1

Answer 2

PORTFOLIO BETA An individual has $35,000 invested in a stock with a beta of 0.8 and
another $40,000 invested in a stock with a beta of 1.4. If these are the only two investments
in her portfolio, what is her portfolio’s beta?