DTF Investments Ltd has a two-stock portfolio: 40% invested in Apple stock and 60% invested in Pear stock. The table below sets out the expected return on the stocks for various states of the economy (returns are shown in decimals). What is the expected return of DTF Investments Ltd’s portfolio? Record your answer to the nearest four decimal places (e.g., If your answer is 3.40%, then report 0.0340). State of economy Probability Apple Stock Pear Stock Boom 0.21 0.27 0.26 Normal ? 0.08 0.11 Bust 0.15 -0.17 -0.17

An investor has the following portfolio set out below. What is the expected return on the portfolio? Record your answer to the nearest four decimal places (e.g., If your answer is 3.40%, then report 0.0340). Company Return Beta $ invested TTYL Ltd 0.217 2.1 39,000 FML Ltd 0.042 0.35 28,000 IDK Ltd 0.088 0.57 19,000 Government Bonds 0.022 36,000

An analyst makes the following forecasts about the economy for next year and the rates of return of a portfolio:EconomyProbabilityRate of ReturnRecession 25%-30%Normal35% 5%Recovery40%20% Calculate the standard deviation of the expected rates of return (as a percentage) for the portfolio for the one-year period.

Consider the following information: State ofEconomy Probability of State of Economy Rate of Return if State OccursStock A Stock B Stock CBoom   0.60     0.08     0.16     0.34  Bust   0.40     0.18     0.09     −0.06   a. What is the expected return on an equally weighted portfolio of these three stocks? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

Consider the following information:    Rate of Return if State OccursState of Economy Probability of State of Economy Stock A Stock BRecession   0.15     0.07   − 0.24  Normal   0.55     0.16     0.21  Boom   0.30     0.27     0.26    Calculate the expected return for each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.)

Mr. A has a total fund of 40,000 INR. A decided to invest ₹ 25,000 in a portfolio with an expected return of 7.5 percent and invest the rest in a risk-free asset that he expects to return 3.6 percent. What rate of return is he expecting on his overall portfolio?