1. A stock has a beta of 1.45, the expected return on the market is 12%, and the risk-free rate is 1.5%. What is the expected return on the stock?

2. You have $250,000 to invest in a stock portfolio containing Stock H and Stock W. Stock H has an expected return of 16 percent and Stock W has an expected return of 9.5 percent. If you wanted a portfolio with an expected return of 12 percent, how much money will you invest in Stock H?

3. If a stock has a beta of 1.85 and the standard deviation of the market is 30%, what is the covariance between the stock and the market?