1. Given the following probability distributions of assets X and Y returns.

Prob. X's return Y's return 25% 10% 12% 25% 12 16 25% 14 20 25% 16 24 Find asset Y's expected return and standard deviation.

• A.

  18; 4.495

• B.

  18; 4.494

• C.

  18; 4.472

• D.

  18; 4.427

2.

Given the following probability distributions of assets X and Y returns.

Prob. X's return Y's return 25% 10% 12% 25% 12 16 25% 14 20 25% 16 24 Find the correlation coefficient between the returns of the two assets.

• A.

  +1

• B.

  0

• C.

  -1

• D.

  +4

3.

Given the following probability distributions of assets X and Y returns.

Prob. X's return Y's return 25% 10% 12% 25% 12 16 25% 14 20 25% 16 24 You create a portfolio that consists of 1/4 invested in X and 3/4 invested in Y. Find the portfolio's return.

• A.

  15.50%

• B.

  16.50%

• C.

  16.75%

• D.

  16.875%