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1)The returns on the common stock of Antalya Inc. are quite cyclical. In a boom...

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Finance

1)The returns on the common stock of Antalya Inc. are quite cyclical. In a boom economy, the stock is expected to return 27% in comparison to 13% in a normal economy and a negative 20% in a recessionary period. The probability of a recession is 30% while the probability of a boom is 5%. The remainder of the time the economy will be at normal levels. What is the standard deviation of the returns on this stock?

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2) Your portfolio has a beta of 1.24. The portfolio consists of 10% U.S. Treasury bills, 55% in stock A, and 35% in stock B. Stock A has a risk-level equivalent to that of the overall market. What is the beta of stock B?

DO ALL CALCULATION MATHEMETICALLY.

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