Question
1. Darien Inc. stock will faces the following possible outcome of returns for the next period: 32% with probability 20% , 15% with probability 30%,
1.
Darien Inc. stock will faces the following possible outcome of returns for the next period: 32% with probability 20% , 15% with probability 30%, and -11% with probability 50%. What is the expected rate of retun for Darien Inc. stock over this period as a percent to a two place accuracy to the right of the decimal point.
2.
Norwalk Inc. stock price moves from $110 to $120 and also pays $5 in dividends at the end of the period. What is the rate of return on Norwalk Inc. stock over this period as a percent to two places. (You need to calculate your rate of return to four places before converting to percent)
3.
Josephine has $4000 invested in stock with a beta of 0.72 and $6000 invested in a stock with beta of 0.45. These are the only investments for her. Calculate the beta of Josephine's total investment to two place accuracy to the right of the decimal point.
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