7. This is the complete assignment. No additional info given. State of the world Probability Security Returns X Security Returns Market Boom .30 .25 .15 Normal .40 .07 .10 Recession .30 .03...

7.This is the complete assignment. No additional info given.

Is this distribution symmetrical?Calculate the covariance.Calculate the variance of the portfolio made up of 30% X and 70% of the Market.Find the Beta for the firm.Find the correlation coefficient.What does beta measure?

Assuming the beta calculated above, and assuming E(RM) = 12%; Rf= 8%Find the price of a stock that paid a dividend of $3.00.Assume that the stock will grow at 4% for the next 5-years.Thereafter the grow rate is expected to be a negative 3%.