1. EXPECTED RETURN: A STOCK 3 retums nave the following aistribution: Economy Probability of This Economy Occurring Rate of Return if This Economy Occurs -30% -14% Weak Below average Average Above average Strong 11% 20% 45% The stock's expected return is a 13.50% b. 13.70% c. 13.80% 13.90% e. 13.97% QUESTION 2 2. From problem 1, what is the standard deviation? a 17.54% b. 21.86% c. 23.71% d. 26.93% QUESTION 4 4. The mathematical measurement for the volatility of a stock's return is its standard deviation True False QUESTION 5 5. The portfolio below has the following common stock: Company Expected Return East Corp $25,000 7.5% West Corp $50,000 9.25% North Corp $75,000 6.50% South Corp $100.000 8.0% $250.000 The expected return of this portfolio is a. 6.50% 6.6.75% c. 7.50% d. 7.75% e. 8.50% QUESTION 6 6. Which one of these is a firm specific risk? A) Revision to the corporate tax laws. B) Inflation increase of 2.3%. C) Deterioration in the overall economic outlook. D) A fire at the company's main factory