Question
1. A stock was priced at $23.08, $24.15, $23.99, and $24.26 at end of Years 1 to 4, respectively, The annual dividend is constant at
1. A stock was priced at $23.08, $24.15, $23.99, and $24.26 at end of Years 1 to 4, respectively, The annual dividend is constant at $.20 a share. What is the geometric average return on this stock?
2. A stock had returns of 9%, -6%, 4%, and 16% over the past four years. What is the standard deviation of these returns?
3. Assets with thicker tails in their return history distributions may suggest:
4. What characteristics do we use to describe assets in the financial markets?
5. If the volatility in an asset's price increases then the ERP will:
6. A stock had returns of 8 percent, 39 percent, 11 percent, and -24 percent for the past four years. Which one of the following best describes the probability that this stock will not lose more than 43 percent in any one given year?
7. The ratio of systemic risk as a proportion of a particular asset which represents the average systemic risk in a group of assets is:
8. Stock A is expected to return 12 percent in an expansion phase and 6 percent in a normal economy. Stock B is expected to return 20 percent in an expansion phase and 4 percent in a normal economy. There is a 40 percent probability that the economy will go into an expansion phase; otherwise, it will be normal. What is the portfolio variance if 30 percent of the portfolio is invested in Stock S and 70 percent is invested in Stock T?
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