1. There is a 15% probability of a below-average economy and a 85% probability of an average economy. If there is a below-average economy, Stock A will have returns of -9%. If there is an average economy, Stocks A will have returns of 8%. What is the standard deviation of Stock A. (4 decimals)
2. You are invested 26% in growth stocks with a beta of 1.8, 26% in value stocks with a beta of 0.7, and 48% in the market portfolio. What is the beta of your portfolio? (1 decimal place)
3. The following information is for the next two questions. A stock had the following annual returns: 18%, 8%, -1%, and -12%. What is the stock's expected return? (Show your answer to four decimals.)