Dominic owns a two-stock portfolio that invests in Celestial Crane Cosmetics Company (CCC) and Lumbering Ox Truckmakers (LOT). Three-quarters of Dominic's portfolio value consists of CCC's shares, and the balance consists of LOT's shares. Each stock's expected return for the next year will depend on forecasted market conditions. The expected returns from the stocks in different market conditions are detailed in the following table: Market Condition Probability of Occurrence Celestial Crane Cosmetics Lumbering Ox Truckmakers Strong Normal 0.25 0.45 Weak 0.30 30% 18% -24% 42% 24% -30% Calculate expected returns for the individual stocks in Dominic's portfolio as well as the expected rate of return of the entire portfolio over the three possible market conditions next year. •The expected rate of return on Celestial Crane Cosmetics's stock over the next year is •The expected rate of return on Lumbering Ox Truckmakers's stock over the next year is •The expected rate of return on Dominic's portfolio over the next year is The expected returns for Dominic's portfolio were calculated based on three possible conditions in the market. Such conditions will vary from time to time, and for each condition there will be a specific outcome. These probabilities and outcomes can be represented in the form of a continuous probability distribution graph. For example, the continuous probability distributions of rates of return on stocks for two different companies are shown on the following graph: PROBABILITY DENSITY -40 -20 Company A 20 Company B 40 60 RATE OF RETURN (Percent) Based on the graph's Information, which of the following statements is true? Company A has a smaller standard deviation. Company B has a smaller standard deviation.

Analysts' estimates on expected returns from equity investments are based on several factors. These estimations also often include subjective and judgmental factors, because different analysts interpret data in different ways Suppose, based on the earnings consensus of stock analysts, Gregory expects a return of 13.54% from the portfolio with the new weights. Does he think that the required return as compared to expected returns is undervalued, overvalued, or fairly valued? O Undervalued Overvalued O Fairly valued Suppose instead of replacing Atteric Inc.'s stock with Baque Co.'s stock, Gregory considers replacing Atteric Inc.'s stock with the equal dollar allocation to shares of Company X's stock that has a higher beta than Atteric Inc. If everything else remains constant, the required return from the portfolio would increase

Pls show complete steps and explanation the formula used

Cheyenne holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Omni Consumer Products Co. (OCP) Tobotics Inc. (TI) Water and Power Co. (WPC) Makissi Corp. (MC) O Omni Consumer Products Co. O Makissi Corp. Tobotics Inc. O Water and Power Co. Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Makissi Corp. O Water and Power Co. Investment Beta $2,625 0.90 $1,500 1.90 $1,125 1.20 $2,250 Omni Consumer Products Co. 0.30 O Tobotics Inc. Standard Deviation Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? 9.00% 12.00% 18.00% 28.50%

Ariel holds a $5,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock’s beta, is listed in the following table: Stock Investment Beta Standard Deviation Perpetualcold Refrigeration Co. (PRC) $1,750 1.00 15.00% Tobotics Inc. (TI) $1,000 1.50 11.00% Three Waters Co. (TWC) $750 1.10 20.00% Mainway Toys Co. (MTC) $1,500 0.50 22.50%   Suppose all stocks in Ariel’s portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Mainway Toys Co. Tobotics Inc. Three Waters Co. Perpetualcold Refrigeration Co.     Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Perpetualcold Refrigeration Co. Tobotics Inc. Three Waters Co. Mainway Toys Co.       If the risk-free rate is 7% and the market risk premium is 8.5%, what is Ariel’s portfolio’s beta and required return? Fill in…