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Your friend Adam Smith from Yorkville University just got a job as an investment analyst for a major Canadian financial institution. Adam had a 93% average, however, everyone knows that he cheated and plagiarized throughout his time in school. Now Adam is faced with the stark realities of working and there is no Course Hero, Chegg or Rajveer home tutorial to help him out. Adam's boss gives him his first assignment. It involves analyzing two Canadian Telecom companies Telus and Rogers. Telus stock is currently trading at sixty-five dollars per share. Economic forecasts show that price of Telus shares will be fifty-three dollars if there is a recession, seventy-three dollars if the economy is normal and eighty-five dollars if the economy is booming. The probability of a recession, normal and booming economy is twenty, sixty and twenty percent respectively. Due to the COVID pandemic, dividends had been suspended for Telus and as a result the beta for this company is 0.68. On the other hand, Rogers Communication has continued paying its dividend and as such has an expected return of thirteen percent, a standard deviation of thirty-four percent and a beta of 0.45. The correlation between Telus and Rogers is 0.48. Finally, Adam is told that the market portfolio has a beta of 1 and a standard deviation of fourteen percent The boss asks Adam for the following (a) Use the Capital Asset Pricing model to determine the expected return and standard deviation of Telus stock. (b) Building a portfolio of sixty percent investment in Telus and forty percent in Rogers communication what would the following be for this portfolio: i Expected return ii. Standard deviation iiiBeta for the portfolio iv. What would the Beta be for this portfolio if the investment was split into 80% Government T-Bills (no risk) and 10% for Telus and 10% for Rogers Communication stock. Show all your work Your friend Adam is now worried as he does not know how to proceed. He regrets not purchasing the Textbook or having paid attention during his Introduction to Managerial Finance class

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