1. You own a portfolio that is 34 percent invested in Stock X, 21 percent invested in Stock Y, and the rest invested in stock Z. The expected returns on these three stocks are 11 percent, 17 percent, and 11 percent, respectively. What is the expected return on the portfolio?
2. You own a portfolio that has $3257 invested in Stock A and $4049 invested in Stock B. If the expected returns on these stocks are 10 percent and 10 percent, respectively, what is the expected return on the portfolio?
3. A stock is currently selling for $80 per share. You could purchase a call with a strike price of $60 for $22. You could purchase a put with a strike price of $60 for $5. Calculate the intrinsic values of the call and put options. Also, calculate the time values of the call and put options.