1. The McBerry Corp. stock was selling for $20 per share at the end of 2007, $23 at the end of 2008, $18 at the end on 2009, and $22 at the end of 2010. They paid a dividend of $1 per share in 2007, 2008 and 2010, but not in 2009.

Calculate the return on berry stock for each year, the average return for the period, and the standard deviation for the period.

2. If you have $30,000 invested in each of two stocks whose expected rates of return are 9% and 11% respectively, and $20,000 invested in each of another three stocks whose expected returns are 10%, 12% and 14%, what is the expected return on your portfolio?

3. If the betas on the stocks above are 0.8, 1.1, 1.0, 1.2 and 1.4, respectively, what is the beta of your portfolio, and what is the required return on the portfolio if the risk free rate is 4.6% and the return on the market portfolio is 10.4%?

4. The return on the Verschelde Corp. has the following return distribution:

Prob. Return
.10 -10%
.15 -0%
.20 8%
.25 12%
.20 18%
.10 24%

Calculate the expected return and standard deviation for Verschelde.