Question
1. Find the expected return and standard deviation for stock A and stock B Scenario Probability Stocks Bonds Boom 5% 26% 10% Very Good 20%
1. Find the expected return and standard deviation for stock A and stock B
| Scenario | Probability | Stocks | Bonds | |
| Boom | 5% | 26% | 10% | |
| Very Good | 20% | 18% | 11% | |
| Normal | 50% | 12% | 4% | |
| Poor | 20% | -2% | 7% | |
| Bust | 5% | -8% | 9% | |
2. Glenn's discount payday loans offers the following terms: Glenn will charge you $9 per $100 advance, and the loan is due in 16 days
the APR of the loan is______________ and the EAR of this loan is ________________
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown
7th Edition
0324171730, 978-0324171730
