Find what is the firm expected rate of return

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Problem 1: Danielle, Inc.'s stock has a 25% chance of producing a 30% return, a 50% chance of producing a 12% return, and a 25% chance of producing a -18% return. What is the firm's expected rate of return?

Problem 2: Fun Bobby the Kid has Php100,000 invested in a 2-stock portfolio. Php35,000 is invested in stock AX and the remainder is invested in stock BY. AX's beta is 1.50 and BY's beta is 0.70. What is the portfolio's beta?

Reference no: EM132616701

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