1. A stock has the following expected returns based on the probability of economic outcomes. What...
1. A stock has the following expected returns based on the probability of economic outcomes. What is the stock's standard deviation?
| Economy | Probability | Expected Return |
| Strong | 25.00% | 20.00% |
| Normal | 75.00% | 8.50% |
A. 11.38%
B. 9.09%
C. 4.98%
D. 5.75%
2. A portfolio with an expected return of 9.6455% contains 4 stocks as outlined below. What amount (market value) is invested in Stock A?
| Stock | Expected Return | Market Value |
| A | 8.50% | X |
| B | 12.25% | 650,000 |
| C | 3.75% | 200,000 |
| D | 9.00% | 175,000 |
A. $1,025,000
B. $1,000,000
C. $341,667
D. $350,000
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1. A stock has the following expected returns
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A portfolio with an expected return of 9.6455% contains 4 stocks as outlined below. What amount...
A portfolio with an expected return of 9.6455% contains 4 stocks as outlined below. What amount (market value) is invested in Stock A? Stock Expected Return Market Value A 8.50% X B 12.25% 650,000 C 3.75% 200,000 D 9.00% 175,000 A. $1,025,000 B. $1,000,000 C. $341,667 D. $350,000
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